This Guide is supplied for general information only. You should seek specific advice for your individual circumstances before acting upon information provided.
What is Critical Illness Insurance?
Critical illness insurance covers an individual for life or for a set period against a number of serious illnesses, diseases and medical conditions. It pays out a single lump sum or income on the diagnosis of one of the illnesses specified in the policy details.
Please note different providers use different definitions in relation to critical illness insurance.
What are the benefits?
Critical illness insurance pays a lump sum if you are diagnosed with one of a number of specified ‘critical’ illnesses during the term of the policy.
It is common for a critical illness policy to be combined with a life insurance policy to provide two types of cover. If you decide to purchase one of these combinations you should bear in mind that you will only be able to claim if you contract an illness, as defined in the terms of the policy, and you may lose the life cover element unless you have bought additional life cover.
What different types are there?
Critical illness policies cover numerous specified illnesses and cover varies from provider to provider. It is important, that when taking out a policy, you understand which illnesses are covered by the policy offered by your chosen provider
Can I effect a policy that covers myself and my partner?
You can have a joint policy with your partner, and this may prove to be cheaper than having two separate policies, but bear in mind that if one partner contracts an illness on the policy list, the other partner’s cover will cease as the policy has satisfied its intended function.
Like many types of Insurance the prospect of having more than one person covered under the same policy is an important aspect of the planning required.
If you need any further information or assistance with deciding which approach is best for you then please feel free to contact us.
What should I think about when choosing a policy?
Firstly you should decide the sum of money you would need if you were diagnosed with a critical illness which may prevent you from working again or necessitate a long period of absence from work. You might need to pay off a specific debt like a mortgage, arrange for nursing care or pay for further medical assistance. Your dependents may need an income which allows them to continue to live in the same way as they had prior to you being forced to stop working.
When you want to compare policies from different insurance providers it is very important to consider the illnesses that they cover before you compare the price that they charge. If you need assistance in deciding upon the most appropriate critical illness policy for you please feel free to contact us.