What are the most common optional extras available on life insurance policies?

When considering the purchase of a life insurance policy you are almost certainly going to be offered additional extras that maybe added to the plan. The following three are the most common: -

Hot Topics

What is the difference between a Guaranteed and Reviewable life insurance policy?
With a “Guaranteed” policy the Life Company guarantees that it will never increase the premium.....
Will I need a medical?
This depends upon your medical history and the exact plan you have chosen.
Will I get charged more as a smoker?
Yes you will. But first let us give you the usual Life Company’s definition of a smoker:
Laws and Life Insurance
The following Questions represent the legal aspects of Life Insurance we think you will be most interested in. The information is not definitive nor is it exhaustive but simply an introduction into the legalities involved.
UK Life Insurance and Laws in the European Union
All Life Insurance policies sold by UK based Life Companies cannot be sold to residents in other EU countries.

Critical Illness Insurance

Critical Illness Insurance will provide you with a lump sum payment if you are diagnosed with a critical illness. Typically, the level of cover for your critical illness cover is identical your life cover. However, please note that with the majority of policies a payout for a critical illness finishes the policy. It will not pay out again if you subsequently die.

Critical Illness Insurance can be very expensive but for most modern families it is an important part of future family protection.

Premium Protection

With Premium Protection, if you were off work due to illness or became unemployed, the Life Company would pay your monthly premiums.

Index Linking

Index Linking ensures your cover level will increase in line with inflation. It means that the purchasing power of your policys’ cover level remains constant. If you take this option your monthly premiums will also rise correspondingly.

Index Linking is only relevant if you are insuring against costs that you expect to increase over time. Index Linking would not be relevant if you were insuring in order to payoff a mortgage or loans as the value of these do not increase in line with inflation.