Critical illness insurance
Critical illness insurance, also called critical illness cover, is a long-term policy covering you when you contract or suffer a severe illness. The illnesses that it covers will be mentioned in the policy. If you find yourself suffering from one of the illnesses in your policy, your insurers will pay you a tax-free lump sum payment. This payment is designed to help you pay your mortgage/rent, debts, and any home alterations you may need, such as wheelchair access.
It is essential to be aware that when you take out your policy, not all illnesses will be covered. You will also need to choose what you want to be protected and what is relevant to you. For example, if there is a history of strokes in your family, then this is something it might be worth being covered for.
The most common illnesses included in policies are strokes, heart attacks, certain types or stages of cancer, and multiple sclerosis. Most policies will also consider permanent disabilities, which are a result of severe illness or injury.
It is important to note that once you have received your payment, most insurers will consider the end of your policy. As a result, you will not be covered if you get ill again.
You most likely will not be covered for an illness known before purchasing a policy.
Do you need critical illness cover?
You should consider having critical illness cover if you do not think that state benefits will be enough to cover your bills and expenses if you find yourself in a position where you cannot work due to illness or injury.
If you do not have much in the way of savings or you will not receive sick pay for a more extended period of time needed off, these are more reasons you may consider getting this type of cover.
What will affect the costs?
The premium amount that you will be expected to pay depends on: