Image courtesy of pictures of money
Image courtesy of pictures of money
There are many different forms of life insurance and they come with different terms and conditions. Some come with critical illness cover and some do not and it can be difficult to know whether it is necessary to get this cover or not. Some people will not even give it much thought, but it is actually important to consider it.

It is worth finding out first exactly what is covered by this insurance and then think about whether it is something that you think you might use. Insurance is all about risk. You pay the insurance to cover a risk and you have to decide whether the risk is high enough to warrant paying for the insurance.

For example, you may think that it is not worth bothering with the insurance if you are young and healthy but if you are older and prone to illness you may decide to take it. You may also worry that if you were ill and could not work, that you may find things very difficult financially and therefore want the security of knowing that the insurance is there. Some people tend to worry about things and like the peace of mind that they get from paying insurance. They are always wondering ‘what if…’ and imagining the worst and insurance can help them to know that they will have an income should they be unwell.

It is really important to look carefully at the insurance. They are not all the same and the cover may not be exactly what you expect. Read through it carefully and if necessary discuss it with a financial advisor to find out exactly how much you have to pay and under what circumstances you would be able to make a claim and how much you would get. It is so important to be completely clear on this or else you cannot make an informed decision as to whether you want it or not. You may also assume that the cheaper insurances will cover you for less, but this may not always be the case. You cannot just assume that the dearer the insurance, the better it is. You need to look into each in detail to check.

It is also really important to do a cost comparison between lots of products. See what cover you can get for what money. This will give you a better chance of being able to decide which of the insurance policies will cover what you want them to and will give you the best price. Consider how much you will have to pay and decide whether you think that this is good value for money. You may think that it would be better to save some money each month instead and use that if you need it if you are unwell. It all depends on your own personal circumstances but it does need a lot of thought. You can ask a broker to help you with this or use a comparison website to compare features and prices.