If you are diagnosed as having a life-threatening condition then critical illness insurance will pay out a tax-free lump sum Most policies combine life and critical illness cover, paying out whichever happens first; Death or critical illness

Life insurance helps your dependants to be financially secure in the event of your death When you buy life insurance you stipulate the figure you want the policy to pay out when you die – this term is the sum assured

As a reaction against recent criticism that sickness policies are being mis-sold, the industry claims that it has already put new guidelines into place A review by the ABI provided more rigorous standards, with easier to understand headings on brochures and standard wording to give a clearer picture

LifeSearch, the independent life insurance and protection specialist is advising consumers to protect themselves against the cost of long-term care for Alzheimer's and other types of dementia In Britain, more than 700,000 people have dementia, a figure that is estimated to rise to more than a million by 2025

The chief financial regulator expressed its concern a few years ago that thousands of policyholders did not know what their policies covered nor how they Those fears still remain true

If you have a family history of health problems or if you drink or smoke heavily you might be under the illusion that critical illness cover or life insurance cover may be extortionately expensive Marketing manager at Scottish Equitable Protect, Heather Armstrong, says this isn’t always the case, "Many of those drinking, smoking or eating 'too much' may well shy away from cover for fear of being unduly penalised for their bad habits

If you have a test taken, to see if you have genes that show you may be at risk of developing a life threatening disease, the British government allows your insurance company to look at the results Governments in the rest of Europe ceased this as they feared the results could be used by insurers to perhaps increase premiums or even refuse cover altogether

Andrew Merricks, head of investments at Brighton-based financial adviser Skerritt Consultants, warns that it is very short-sighted of people not to have Life Assurance and/or Critical Illness Insurance as he insists that life has two main risks - either living too long and dying too soon "It's absolutely crucial to have some cover in place – particularly if you've got a young family," he says

Life, critical illness insurance and income protection policies are out there in abundance but hardly anyone is buying them according to Swiss Re – their estimated funding shortfall is an astounding 23 trillion

It is shocking but true that one in three of us will suffer some form of cancer before the age of 65 Donna Bradshaw, director at Independent Financial Adviser (IFA) Fiona Price & Partners, says "That's why protection is imperative – those are not good odds," Life Assurance is the most popular cover taken out although it is debatable as to whether it is the most necessary