Critical Illness Cover
Critical Illness Cover explained........
Critical Illness Cover is an insurance policy taken out for financial security, should you find yourself critically ill. The illnesses covered vary from one policy to the next, but will usually include stroke, heart attack, cancer, kidney failure, coronary artery bypass, major organ transplant, and MS. Upon diagnosis with a serious illness or permanent disability, the policy pays out a lump sum tax free (generally up to £250k) on the condition that you survive for at least a month after diagnosis. The money is usually useful for paying a mortgage or other debts, or simply for day to day living.
Critical Illness Cover can typically be taken between the ages of 17 and 70 (though there are insurers that also cover children), and specified for a term or for life. Payout is usually possible after a specified waiting period, typically between 2 and 3 months. It is important to note that some illnesses are not covered, and others have certain restrictions to them so it is vital to be aware of these limitations on your chosen policy. You must focus on which policy is more suitable for you and not just how low the premiums can be.
As part of a couple, you can take out Critical Illness Cover that pays either one of you if the other falls seriously ill, much like with Life Insurance. Indeed, Critical Illness Cover is often taken out alongside Life Insurance to cover all bases (which in some cases can reduce monthly premiums), though it can also be a standalone policy. Business partners are also able to take out Critical illness cover alongside or independent of Key Person Cover.
You must make sure you disclose a full and honest account of your medical history prior to taking out Critical Illness Cover, otherwise your cover may be at risk of being considered void should you come to make a claim. Premiums do indeed vary according to lifestyle and medical history, increasing accordingly for smokers or those with a chequered family medical history. There are many types of Critical Illness Cover on the market, so using our Brokers will help you chose the right policy for you, taking into account any small print.