Specified Illness Cover - Neiland Financial Services

Specified Illness Cover

Specified Illness Cover is a benefit which pays out a tax-free lump sum if you are diagnosed with one of the specific illnesses or disabilities that your policy covers. The main aim of the insurance is to replace a loss of income due to illness.

Why should you consider Specified Illness benefit?

You have no other provisions in place should you be diagnosed with a specified illness.

You have a mortgage, personal loans and other debts which you still have to pay even if you became seriously ill and unable to earn an income

You have a family that are financially dependent on your ability to work and earn an income

It is important to realise that specified illness does not replace your income if you were out of work because of a long-term illness. The policy is designed to pay a once off lump sum rather than an ongoing income.

Accelerated Cover versus Stand Alone Cover

Specified illness can be added to a life policy on an accelerated basis, so the payment of a claim under the specified illness cover, reduces the balance of the life cover remaining on the policy. The other option is to have the specified illness as stand alone, in this way the specified illness cover is separate from the life cover, or may even stand alone without any life cover.

Example:

Accelerated Specified Illness

Life A is assured for €250,000 with €100,000 accelerated specified illness cover, under a 35 year level term policy commencing at age 30. Life A is diagnosed at age 55 with cancer, which is one of the specified illnesses which is covered under the policy. The life company pays over €100,000. There is still €150,000 life cover left on the policy (€250,000 – €100,000).

Life A recovers from the illness, however dies at age 60. The life company pays out the remaining life cover benefit of €150,000 to the estate or next of kin.

Stand Alone Specified Illness

Life B is assured for €250,000 with €100,000 standalone specified illness cover, under a 35-year level term policy commencing at age 30. Life B is diagnosed at age 55 with cancer, which is one of the specified illnesses which is covered under the policy. The life company pays out €100,000. There is still €250,000 life cover left on the policy, as the specified illness cover was stand alone or separate from the specified illness cover.

Life B recovers from the illness, however he dies at age 60. The life company pays out the life cover benefit of €250,000 to the estate or next of kin.

Contact us today on 053 9146592 so that we can get some quotes for you for the specified Illness cover