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Many people are unaware that they are six times more likely to have a serious illness that requires hospitalisation or a number of weeks off work, than they are to die before the age of retirement.

It is therefore essential that you give the same or even greater importance to arranging health insurance when you are looking at life cover. In fact, it is now possible to obtain contracts that cover you for both eventualities. By completing this very simple fact-find, we can assess your needs and give you some idea of the cost of covering yourself or your partner.

Permanent Health Insurance
This policy is designed to pay out a weekly or monthly amount to replace A proportion of your income in the case of long-term illness. However, there is a maximum of 50% of your gross pay that can be covered by this type of policy. There is a deferred period during which no money is paid which is normally between 4 weeks and 13 weeks. This period is normally covered by your employer under your contract of Employment. However, the Deferred Period can be as little as one day and as much as two years.

In many cases, the policy premium is paid for by your employer to reduce their need to pay you during an extended illness.

There are various forms of these PHI contracts and you should take advice from an independent financial adviser as to the most suitable form before making the decision. In particular, if you have a previous condition, then this may be precluded from the cover given.

Critical Illness Insurance
These policies are designed to pay out a lump sum if you are diagnosed with any one of a number of named serious conditions.

The conditions covered vary from company to company, but will normally include Cancer, Heart Attack and Stroke. There will frequently be a long list of other conditions such as MS, Motor Neurone Disease, loss of sight, hearing and limbs, and others, the details of which vary between insurance companies.

The important difference is that the sum is paid while you are living to allow you to deal with your financial affairs, but does not automatically pay out on death although his may be included at a higher premium.

For companies with Key Personnel whose absence due to a serious illness would cause a problem such as sales management or the technical staff, then it is possible to insure against this occurrence, where the compensation is paid to the company.

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