Critical illness cover is a type of insurance policy that provides a lump sum payment
if you are diagnosed with a specific medical condition or illness listed in your policy. Although it is considered a type of health insurance, a critical illness policy is subject to particular limitations.
Critical illness cover generally comes at a lower cost than health insurance, indicating that the two policies offer different benefits. While both types of policies provide financial compensation for long-term debilitating conditions, the critical difference lies in how the money can be used and how much money is available.
Health insurance primarily focuses on providing funds for medical treatment and typically has no upper limit on how much it will pay. In contrast, critical illness cover offers a specific sum of money, which can be used for any purpose, and is usually paid out quickly.
While there is no obligation to spend the payout from a critical illness policy on medical care, many people do. The money can also be used to pay for household bills if you cannot work for an extended period, explore alternative care, cover other daily living expenses, or make provisions for loved ones or specific plans in the end stages of life.
One significant difference between health insurance and critical illness coverage is that it excludes conditions it won’t pay out for. In contrast, critical illness cover is particular about the conditions that it will cover. Each insurer has a different list of requirements covered by its necessary illness policy, with some covering more illnesses than others.
It is important to note that Winfield & Smith Insurance Brokers does not offer critical illness coverage. While they work with leading insurers that provide these policies, they only make recommendations for health insurance policies. If you are interested in critical illness cover, it is recommended that you speak with an independent financial advisor.
If you have questions about health insurance or want to compare policies, you can talk to the expert Healthcare Consultants at Winfield & Smith Insurance Brokers. However, they cannot offer advice on buying critical illness cover.