Critical Illness Cover
If you were to fall critically ill and no longer able to earn a living, how would you and your loved ones manage financially? If you don’t have enough in savings to live off during this time, critical illness cover can provide you with a real financial lifeline.
We know it’s not something you want to think about now, but it’s essential to consider what would happen if you were to fall critically ill, in order to best prepare for it – if it ever was to happen.
One of the advantageous things about having a critical illness policy in place is that it will pay out a tax-free lump sum if you are diagnosed with one of the illnesses specified in the policy.
Do I need critical illness cover?
If you’re not sure whether you need critical illness cover ask yourself, how would you and your family manage if you were not able to earn a living? If you think you would struggle, then critical illness may be a worthwhile investment.
The money you receive from the payout can be put towards whatever you wish. You could use it to clear any debts you may have, pay for medical bills or adapt your home to make it more accommodating to your needs. You could even invest some or all of the lump sum to generate an income for your family to live on.
What is critical illness cover?
Critical illness cover is a form of insurance that pays out a tax-free lump sum in the event that you are diagnosed with an illness or medical condition specified in the policy, during the term of the policy.
It’s important to establish that critical illness cover is not the same as life insurance. Critical illness cover will only pay out a lump sum if you are diagnosed with a certain illness that is named in the policy. Life insurance pays out if you were to pass away during the term of the policy.
In some instances, you can choose to add critical illness cover as an extra when you invest in life insurance.
What classes as a ‘critical illness’?
When it comes to critical illness cover, it’s important to read the small print to make sure you are clear on exactly what the policy covers.
The list of conditions that qualify as a critical illness can be extensive, with some insurers including more than 60 ailments and injuries. But you might not get a pay-out unless the illness is particularly severe or results in permanent symptoms.
Some forms of cancer may not be included in the policy as they are easily treatable and you might not be able to claim for cancer until it has reached a specified stage. The same applies for a stroke or a mild heart attack – that would normally be considered as a critical illness. However, they could be excluded on the basis of severity. When it comes to critical illness cover, it’s important to know what all the exclusions are – which will be listed in the small print.
What’s included in your critical illness policy will largely depend on the insurer, so it’s important to read the small print so that you’re clear on what illnesses qualify as a critical illness for a payout.
Get protected whilst you still can
Critical illness cover is designed to ease the financial pressures of falling critically ill and not being able to earn a living. Life is full of uncertainties and critical illness can strike at any time. But if you were to fall critically ill, you want to have peace of mind that your family would be able to manage financially without your income and with critical illness cover – you can get that.
If you were to fall critically ill, the last thing you want is to spend your time worrying about your finances. But with critical illness cover, you can focus your time and energy on recovering back to full health again.