Life insurance is a good way to protect your family
The main aim for a life insurance policy is to pay a lump sum to the beneficiary of the policyholder on death of the life assured. Some policies have the facility to add critical illness as an added option. Critical illness tends to pay the life assured on the diagnosis of a specified illness but most contracts cover a different amount of illnesses and within each illness the insurance companies will have different definitions to be met, although the regulator normally will set minimum standard to be offered across a set amount of core conditions.
Most insurance contracts will include terminal illness within a life insurance contract but this should not be mixed up with a critical illness contract. Terminal illness would normally pay out if a policy holder was diagnosed as having less than twelve months to live. But you should always check the key features of any contract prior to signing any documentation.
Most terminal illness benefits would not be paid if the policy was in the last eighteen months of the end of the term of the policy. Potential policy holders take out insurance for a wide variety of reasons; however the most common is to cover any outstanding mortgage or loan or simply to pay a lump sum to cover for potential loss of income. Many policies are taken out on joint life basis, however people might want to do this on a single one only. This is one of the nice things about this type of policy as they are flexible to suit your needs.
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