Is It More Sensible To Purchase Critical Illness Cover Or Payment Protection Insurance?

The advantages of the different payment protection insurance and critical illness cover are of great confusion for some people. On the face of it these two policies seem to offer protection against the same set of circumstances, in particular the illness and injury. People buy these types of insurance because they are concerned about the financial impact of a long lay off from work. They invest in such coverage to protect against unexpected events and potentially life changing.
Before examining the main benefits of the insurance payment protection and critical illness cover, let us first see the main details of each policy. It is important to remember that PPI can protect your finances against a wide range of diseases and injuries. It also offers a long-term protection until the age of retirement. This type of policy will remain valid, whether or not to use it repeatedly.
A critical illness policy, on the other hand, will end after being used once. It is also restrictive in the types of injuries and diseases it covers. Although different providers offer different levels of protection, the diseases covered by most insurance packages serious illnesses include cancer, multiple sclerosis and HIV. Unlike PPI compensation, which is calculated based on the applicant's income, CIC is paid as a lump sum, irrespective of employment status.
It is worth remembering that the amount paid by an insurance payment protection is likely to be significantly lower than that under the guise of serious illness. However, only a person covered by a CIC policy are infected by a virus or injured in a way is not considered "critical", they could be left in a very precarious state. This is one of the main reasons why experts said it makes sense to invest in both forms of protection.
It is understood that not everyone can afford to pay for both the PPI and CIC, especially with mortgage repayment obligations and the pressure in the current financial climate. When the price is a problem, it may well be worth weighing up to your personal situation and talk with companies specializing in each form of protection. After some time studying the market, you should be able to find a policy that offers peace of mind.
For more information on CIC's position it is well worth the money in the FSA Made Clear website, and for more details on the issues surrounding PPI, it is well worth looking at independent review sites.