Critical illness cover supports you financially if you’re diagnosed with one of the medical conditions or injuries included in your policy. It only pays out once, after which the policy ends. This lump sum payment may help pay for your treatment, mortgage, rent or changes to your home should you need it.
What’s included?
The conditions and illnesses covered can vary between different insurers. Most insurers will provide cover for around 40 – 60 different illnesses conditions*
Some examples of critical illness that may be included are:
- Some cancers
- Stroke
- Heart attack
- Organ failure
- Major surgery
- Multiple sclerosis
- Traumatic head injury
- Most policies will also consider permanent disabilities as a result of injury or illness.
- Some policies will make a smaller payment if one of your children has one of the specified conditions**
The cover can help with things such as:
- Cost of care
- Medical bills
- Unexpected expenses
- Loss of income
- Household bills
- Mortgage
- Rent
- Required home alterations, such as wheelchair access
- Debts
When do you need it?
If you’re unable to work due to a serious illness, you might assume that your employer will continue to give you some level of income, or that you’ll be able to rely on benefit payments. In reality, employees are usually moved onto Statutory Sick Pay within six months. State benefits might not be enough to replace your income if you’re no longer able to work. With Critical Illness cover, you chose the lump sum that is affordable and right for you.
Critical illness cover is usually an add-on to life insurance, but we can talk you through all the various options available to you.
I have written this article to help people understand the basics of Critical Illness cover but if you would like more information and a brief look at some insurers, then read my article ”Critical Illness Cover: Comparing Cover.”
*Always read Terms and Conditions carefully before signing. Your age, gender, marital status, family history, occupation and lifestyle can all affect what kind of policy is right for you and how much your monthly payments may cost. Not all conditions are covered. You will need to disclose your medical history. Your policy will end as soon as you stop paying your premiums. Most policies will also state how serious the condition must be to qualify for a payout.
** Some policies charge a small additional fee for children, whilst some don’t cover them at all. It’s a case of finding a policy that works for your individual situation.