What Is Standalone Critical Illness Insurance

What is​ Standalone Critical Illness Insurance?
While the​ majority of​ people who take out a​ critical illness policy choose a​ policy that also includes life insurance,​ there is​ also an​ option many don’t consider - a​ standalone critical insurance policy .​
So what’s the​ difference you​ might ask?
Well a​ policy that includes life insurance means that on​ the​ death of​ the​ person holding the​ policy or​ should that person suffer from a​ critical illness or​ become permanently disabled,​ then a​ lump sum benefit will be paid.
If you​ purchase a​ standalone critical illness policy it​ will only pay out the​ amount of​ benefit should you​ be unfortunate enough to​ be diagnosed with a​ serious critical illness or​ you​ should be become permanently disabled .​
However,​ in​ many cases,​ purchasing a​ combined policy of​ life insurance and critical illness does work out cheaper than purchasing the​ standalone policy .​
The reason behind this is​ that the​ majority of​ people take out the​ combined policy and overlook the​ standalone; this means that competition is​ fiercer for the​ combined,​ which helps to​ keep premiums lower due to​ competition.
The standalone could however benefit you​ if​ you​ don’t have to​ worry about dependants - if​ there is​ no one depending on​ you​ then you​ might not need to​ take out life insurance .​
On the​ other hand if​ you​ have already got coverage for life insurance and you​ are benefiting from a​ great deal,​ then you​ could consider taking out standalone critical illness insurance after shopping around for a​ good deal .​
When purchasing a​ standalone policy it​ is​ in​ your best interest to​ shop around and compare as​ many companies as​ possible for the​ cheapest price and deal or​ use a​ specialist broker who can help .​
All policies have exclusions,​ so it​ is​ imperative that you​ understand the​ terms of​ your policy and what you​ are and are not covered for .​
The small print should be looked at​ with a​ fine tooth comb as​ this is​ where the​ exclusions will be hidden .​
While a​ policy might seem like a​ cheap deal,​ it​ could end up being nothing more than a​ worthless piece of​ paper should your claim be turned down due to​ an​ exclusion you​ didn’t realise was there.

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