Critical Illness Cover

What is critical illness cover?

Most people who consider buying critical illness cover are told about it when they apply for life insurance. This kind of cover is usually bought as an additional benefit on top of a life insurance policy which is a really cost effective way for this kind of cover ensuring your own peace of mind should you become unwell.

The good news is that critical illness cover policy pays out a tax free cash lump sum if you or your partner are diagnosed with a serious illness that is listed on your policy. Most modern critical illness cover policies are very comprehensive and will pay out for a vast number of conditions in part or in full depending on the severity of the condition.

About critical illness cover

This insurance covers a range of serious illnesses that can vary from one provider or policy to another. Life insurance is more simple than critical illness cover, because the ultimate result and reason for claim will almost always be the same.

It is smart to at least consider some sort of levels of critical illness cover even if you can’t afford the full amount that you may want. Yes, a premium may be higher than straight forward life insurance, but like any insurance it’s invaluable if and/or when you need it.

Most critical illness cover policies will cover the main serious or critical illnesses such as Cancer which is the most common, Heart Attack and Stroke. A KEY point to remember when purchasing or reviewing your critical illness policy options is that “cheapest is not always best”. Its always smart to ensure that you insure against any potential problems in a sensible and affordable way.

How much does critical illness cover cost?

Critical illness cover premiums can vary depending on the level of cover you are applying for, the term of your policy and your health. Critical illness cover is generally cheaper for younger people who are a lower risk and usually healthier. Some critical illness cover policies can cost more because these offer better levels of cover, meaning that they will cover a more extensive list of serious illnesses.

Why critical illness cover is important

If either yourself or your partner were to become unable to work because of a serious illness this type of insurance gives you peace of mind to be able to pay bills, mortgage payments and all of your usual monthly outgoings.

Most of us when faced with diagnosis of a serious illness such as Cancer, Heart Attack or Stroke would want this crucial financial peace of mind especially during these incredibly stressful periods. Critical illness cover is designed to provide you and your family with a tax-free cash lump sum to cover your monthly costs if you are unable to work.

Critical illness cover is an extremely versatile life insurance policy and an invaluable insurance if you and your partner become seriously unwell.

Can I get critical illness cover?

Critical illness cover is generally available for most people and will always be available if you are healthy with no major medical issues. Its useful to remember that some insurers may exclude or decline critical illness cover for people with pre-existing medical conditions, so always check the details of any policy with your advisor. ​ If you have been declined critical illness cover in the past then it does not necessarily mean that you cannot get this type of cover at all

Will a critical illness cover policy pay out?

Along with life insurance, claims statistics for critical illness cover are generally very high (usually well over 90%). As long as you disclose everything that you are asked on your critical illness cover applications then you should receive a pay out at claim stage. Remember that if you do not disclose all your medical history, occupation details or extreme sports then it may result in a claim not being paid. Anyone attempting to make a claim for a serious illness which is not covered on their policy which will of course also result in a claim being declined.

How much critical illness cover should I buy?

The level of critical illness cover that is right for you will depend on your income, outgoings and your circumstances (e.g. dependants, mortgages etc.). It is important to think about what circumstances you might need to make a claim on a critical illness cover policy and how much you would need to be financially supported for a period of time.
​You do not always need the same amount of critical illness cover as the level of life insurance that you are applying for. We recommend considering these as two different types of cover and therefore do not need to be the same amounts.

Is critical illness cover better than income protection?

These are two very different policies. Ideally its best to consider an amount of critical illness cover and income protection. Critical illness cover is designed to pay out a tax-free lump sum if you are unable to work indefinitely or for a long period of time due to a serious illness. Life all insurance its for personal peace of mind if the worst happens. We all hope that this will not take place, but all insurance is for peace of mind.

Income protection is designed to pay an income for a period of time (usually 12 or 24 months) or for the remaining term of a policy if you are unable to work due to accident or long term sickness.

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