Critical illness cover, which is also referred to as critical illness insurance, is a long term policy protecting the insured party against a number of serious illnesses.
This type of insurance will pay out a one off, tax free lump sum. The serious illnesses usually covered by such policies can include multiple sclerosis, heart attacks, heart bypass surgery, cancer, kidney failure, stroke and major transplant surgery. This type of insurance is designed to pay off your mortgage, settle any unsecured debts or pay for alterations to your home such as wheelchair access in the unfortunate case you may need it. The policy is usually scheduled to cover a set period of time or until your retirement, making sure you are financially protected until you are able to access your pension.
With medical advances, more people are surviving conditions that may have killed them in the past.
Finding out that you have a critical illness can be devastating but along with this, what if you could not afford to pay your mortgage because you could not work? There is a one in five chance in men and a one in six chance in women that a long term critical illness will prevent them from working.
Even when you are ill, mortgage payments, council tax, utility bills, food and childcare costs will still need to be paid. On top of this you may have additional costs as a result of your diagnosis which all add to the financial pressure you could be under. Your employer may pay you sick pay for a limited time if you are off work and state benefits offer a limited amount but this may not be enough. Critical illness cover will provide the reassurance that you need and give you peace of mind that should you become critically ill you are covered.
You may already have life insurance for when you die and don’t think critical illness cover is for you. However, if you want to talk over your circumstances and review the policies you currently have in place to check if you have adequate cover, please contact one of our team.