Why Life and Critical Illness Insurance Are Better Together

Did you know that one in two people will be diagnose with a critical illness in their lifetime?

Choosing the right financial safety net is essential to safeguarding the financial well-being of your family. And often, the most comprehensive solution involves a combination of both life insurance and critical illness coverage.

So why should you consider both?
Life insurance serves as a financial cornerstone for your loved ones in case of your untimely death.

In today’s climate, where the majority of mortgages are based on two people’s incomes, a life insurance policy would allow the surviving partner to pay off the mortgage in full rather than having to sell their home as the mortgage is no longer affordable on one person’s income.

It can also help ensure that your family can maintain their lifestyle for the term that they would be dependent on your income (for example if the sole breadwinner was to die and they have a young family who depended on their income). This is known as Family Protection where your monthly salary would be paid to your family until they are no longer dependent on your income (21 or until they have finished higher education)

The average age of people taking out life insurance is 35. However, it is never too early or too late to get life insurance.

Critical illness coverage, meanwhile, offers crucial financial assistance when you face a serious medical diagnosis. It can pay off the mortgage, cover treatment costs, substitute for lost income, and help with other financial obligations, allowing you to focus on your recovery instead of worrying about how to pay the bills or returning to work before you have fully recovered as you are no longer earning an income or your Statutory Sick Pay has stopped.

Think about what would happen in your situation if the main breadwinner was unable to work for a long period of time, or was diagnosed with a critical illness. How would you fund your mortgage payments, keep on top of monthly bills or pay for treatment that isn’t available on the NHS? The financial impact of not having critical illness cover could be devastating.

A Dual Insurance Approach
Now, imagine combining the benefits of both insurance types. Life insurance secures your family’s future in your absence, while critical illness coverage ensures you can tackle medical challenges without derailing your financial stability. Together, they offer a comprehensive financial safety net that leaves no gaps.

The costs of these types of insurance polices increase significantly the older you get.

We strongly recommend considering both types of coverage, especially if you have a mortgage, dependants, or others relying on your income. By opting for both, you’re not just planning for one eventuality; you’re creating a robust financial plan that provides peace of mind in a range of difficult situations.

To make the most informed decision, consult with a member of our team who can tailor recommendations to your unique needs and circumstances. Contact us today on 0208 364 3444 or click here to schedule a free consultation call.

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