What Is Critical Illness Cover and Do I Need It?
Critical illness cover is a long-term insurance policy that offers protection for a wide range of serious illnesses. It provides both you and your family with a tax-free, one-off lump sum, ensuring you have financial cover when you need it most.
What is critical illness cover?
Critical illness cover helps those suffering with a serious illness by paying out a tax-free lump sum of money once they have been diagnosed. In most cases, to receive the pay out the policyholder will have to survive one month from the point of diagnosis. As long as the premiums continue to be paid, you will continue to be covered. All protection stops once the policy term ends.
If you are paying for term life cover, critical illness cover is usually available as a combined policy. If you combine your critical illness policy with term life cover your premiums will be cheaper than paying for separate policies. The downside to cheaper premiums is that you will only be paid out once and often for a lesser amount than two separate policies.
What does a critical illness policy cover?
There are seven core conditions that are usually be covered by the policy. These are cancer, heart attacks, coronary artery bypasses, kidney failures, major organ transplants, strokes, multiple sclerosis and terminal illness.
If a policyholder becomes permanently disabled due to illness or injury, most critical illness policies will also pay out for these conditions. Other illnesses that may also be covered include deafness, Parkinson’s disease, bacterial meningitis and a traumatic head injury.
Should I consider critical illness cover?
Critical illness cover is normally available for people aged between 18- 70.
There can be a number of different reasons why people request this policy. Critical illness cover is used to help support extra costs in the event of falling seriously. Anyone in the following situations may want to consider the benefits of the policy:
- You and your family rely heavily on your salary
- If you fall seriously ill or become disabled and you do not have enough savings
- There is no financial cover available should you have to take a long time off work due to sickness
Anyone on state benefits may also not have enough money to cover their expenses should they fall ill. This is also another reason to give thought to critical illness cover.
Although many people believe life insurance will cover their family’s needs should they pass away, a critical illness or long term disability can prove to be just as financially devastating.
The impact and benefit of a critical illness cover pay-out will vary, although those who do take up the policy get to enjoy the benefits it provides to them and their families.
How much cover will I need?
Before taking on a critical illness policy, consider your financial commitments, such as mortgage and any dependents including children. This should be weighed up against what you would lose financially if you were laid off work for a long time due to a serious illness.
If the policy offers severity-based cover, this means the pay-out will depend on how bad the illness is. Extra protection is also available by taking out life insurance at the same time. This will protect you against different circumstances, allowing you to choose the cover you want for each policy.
Are you considering critical illness cover?
If you are thinking about taking out critical illness cover it is recommended to talk to a financial adviser for advice relevant to your personal situation. If you enjoyed reading our article we offer high-quality financial advice for critical illness cover out of Colchester, Essex. You can get in contact with us today by calling 033 3303 4230 or e-mail [email protected]
FINANCIAL PROTECTION POLICIES TYPICALLY HAVE NO CASH IN VALUE AT ANY TIME AND COVER WILL CEASE AT THE END OF THE TERM. IF PREMIUMS STOP, THEN COVER WILL LAPSE.
Critical illness cover is a long-term insurance policy that offers protection for a wide range of serious illnesses. It provides both you and your family with a tax-free, one-off lump sum, ensuring you have financial cover when you need it most.
What is critical illness cover?
Critical illness cover helps those suffering with a serious illness by paying out a tax-free lump sum of money once they have been diagnosed. In most cases, to receive the pay out the policyholder will have to survive one month from the point of diagnosis. As long as the premiums continue to be paid, you will continue to be covered. All protection stops once the policy term ends.
If you are paying for term life cover, critical illness cover is usually available as a combined policy. If you combine your critical illness policy with term life cover your premiums will be cheaper than paying for separate policies. The downside to cheaper premiums is that you will only be paid out once and often for a lesser amount than two separate policies.
What does a critical illness policy cover?
There are seven core conditions that are usually be covered by the policy. These are cancer, heart attacks, coronary artery bypasses, kidney failures, major organ transplants, strokes, multiple sclerosis and terminal illness.
If a policyholder becomes permanently disabled due to illness or injury, most critical illness policies will also pay out for these conditions. Other illnesses that may also be covered include deafness, Parkinson’s disease, bacterial meningitis and a traumatic head injury.
Should I consider critical illness cover?
Critical illness cover is normally available for people aged between 18- 70.
There can be a number of different reasons why people request this policy. Critical illness cover is used to help support extra costs in the event of falling seriously. Anyone in the following situations may want to consider the benefits of the policy:
- You and your family rely heavily on your salary
- If you fall seriously ill or become disabled and you do not have enough savings
- There is no financial cover available should you have to take a long time off work due to sickness
Anyone on state benefits may also not have enough money to cover their expenses should they fall ill. This is also another reason to give thought to critical illness cover.
Although many people believe life insurance will cover their family’s needs should they pass away, a critical illness or long term disability can prove to be just as financially devastating.
The impact and benefit of a critical illness cover pay-out will vary, although those who do take up the policy get to enjoy the benefits it provides to them and their families.
How much cover will I need?
Before taking on a critical illness policy, consider your financial commitments, such as mortgage and any dependents including children. This should be weighed up against what you would lose financially if you were laid off work for a long time due to a serious illness.
If the policy offers severity-based cover, this means the pay-out will depend on how bad the illness is. Extra protection is also available by taking out life insurance at the same time. This will protect you against different circumstances, allowing you to choose the cover you want for each policy.
Are you considering critical illness cover?
If you are thinking about taking out critical illness cover it is recommended to talk to a financial adviser for advice relevant to your personal situation. If you enjoyed reading our article we offer high-quality financial advice for critical illness cover out of Colchester, Essex. You can get in contact with us today by calling 033 3303 4230 or e-mail [email protected]
FINANCIAL PROTECTION POLICIES TYPICALLY HAVE NO CASH IN VALUE AT ANY TIME AND COVER WILL CEASE AT THE END OF THE TERM. IF PREMIUMS STOP, THEN COVER WILL LAPSE.
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