Combined Life Insurance

A combined life and critical illness policy aims to provide a capital sum on either the diagnosis of a critical illness or your death, whichever happens first.

Essentially, this type of plan aims to cover all eventualities!

A combined life and critical illness plan can be effected for a specified term or for your lifetime, depending upon your circumstances and many companies now offer the option of regular increases in the level of capital to keep pace with inflation.

You will normally only be able to claim on this type of policy once so that if you claim for a critical illness, the plan will then cease and your beneficiaries will not normally then be able to make a claim on your death.

Combined life and critical illness plans can be effected on a single life basis or on a joint life basis and typically, once a claim arises on a joint life policy, the plan will cease and it is then up to the surviving partner to effect further combined life and critical illness cover, if appropriate.

These types of plans are suitable for a variety of purposes, including family protection, key person insurance for employers and employees and to cover a mortgage.

The premiums for a combined policy are comparable to plans offering only critical illness cover although they are generally more expensive that those plans covering death only.

These types of plans have certain benefits, namely:-

The sum assured may be payable on either death or critical illness
A wide range of illnesses are covered
The plan can be tailored for a specific term or to provide cover throughout your lifetime.
The proceeds will be free of income tax and capital gains tax. However, the proceeds of the plan on death may be included within your estate for inheritance tax purposes unless a suitable trust is utilised.

Combined life and critical illness plans are offered by most insurance companies but the range of conditions covered varies from insurer to insurer. As a result, it is imperative that you compare a range of plans to establish the most appropriate policy for your needs.

For quotes and impartial advice fill in our simple form and get advice from one of our qualified advisors. We offer: