What are some optional extras?

Some insurance companies offer some benefits for you to include in your life insurance package. With a waiver of premium the insurer will pay your premiums in case of illness or injury. Your policy can also include a critical illness extra which provides coverage against the risk of serious illnesses. It usually includes debilitating conditions such as heart attack, cancer, and multiple sclerosis. If you develop one of the illnesses listed in the policy, the insurance company will pay a whole amount at once or periodical instalments.
Make sure you know exactly which conditions your policy covers. Protection can range from basic coverage to more complex conditions. Disclose your medical history when you take the policy, otherwise payment might be denied if you are diagnosed with an illness.
Life insurance can be set up so that the amount insured is excluded from your estate and therefore from inheritance tax. The latter is payable if the value of your estate exceeds a certain limit. Even though debts are excluded from the calculation, as a homeowner you are probably already liable for inheritance tax. Gifts you grant over the last seven years of your life are also taxed. The return on life insurance can be used to pay any outstanding taxes from the estate or to meet daily expenses until the money resulting from the patrimony is obtained.
If you buy a ‘qualifying policy’ the amount paid at maturity will be exccluded from income tax. Certain conditions must apply for this to happen. You would need to pay annual or shorter interval premiums for at least ten years or until earlier death.