Cost of CII cover

Unlike many things today the cost of life assurance, mortgage life protection and critical illness protection has fallen in recent years. The competitive nature of these products has meant that many life offices have actually reduced their rates for this type of cover.

Each Life Assurance Company has to decide whether or not you are an acceptable risk. On the proposal form you fill in, they will ask questions about your state of health, whether you smoke or not and family medical history. Your answers determine what premiums will be charged for the cover you need. Life assurance companies may request further information from your Doctor or ask you to undergo a medical if they feel it's necessary, even so it may not mean you have to pay higher premiums.

The cost of the premiums will be determined by:

• Your age
• Sex
• Personal and family medical history
• Occupation
• Whether you smoke
• The range of diseases covered by the policy

With most critical illness policies if you stop paying your premiums the cover will cease. If you then want to start cover again, you would possibly need a new policy and you would need to provide current medical details. You may also find your monthly premium has changed.

When you decide upon the policy you need, there may be the option to include Waiver of Premium at the outset. This means after a deferral period, your premium continues to be paid for you by the insurance company if you are unable to work through illness or disability.