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

Critical Illness Insurance
Critical Illness Insurance provides you with a tax free lump sum if you are diagnosed with a critical illness. Normally the sum insured for critical illness is identical to the value of your life cover. However, please note that if the policy pays out for a critical illness – the policy is finished. It will not pay out again if you die.

Critical Illness Insurance can be costly but for most families it is an important part of their security.

Waiver of Premium
This is option, if you are off work through illness or become unemployed, the insurance company would pay your monthly premiums.

Index Linking
Index Linking enables the value of your insurance cover to increase in line with inflation. It maintains that the purchasing power of the sum insured. If you want this option your monthly premiums will rise in proportion to the increased sum insured.

Index Linking should only be considered if you are insuring against costs which are expected to rise in line with the cost of living. Index Linking is not appropriate if you are insuring to repay a mortgage or other loans, as their capital values do not increase.

The following Frequently Asked Question are related to the above topic. You may care to read them: -

What does Critical illness Insurance do?
What is the difference between a Reviewable and a Guaranteed policy?

Life Assurance
Mortgages