Critical Illness Cover

 

Critical illness cover pays out a tax-free lump sum if you are too ill
to work again.


This is particularly significant if your dependants would be unable to meet
mortgage costs and other debts if your income was no longer there to
support them.


Critical illness is not the same as life insurance  - however, both are often
sold at the same time.

 

Find Out More >>>

 


Tax-Free Lump Sum


A tax-free lump sum is paid out if you have a serious condition that is named in the policy during the term of the policy.


Note: Certain policies may pay a monthly allowance if you have made the necessary arrangements.


Why Get Critical Illness?


The lump sum can be used to pay for the mortgage, household bills, or any medical bills. It can be used to assist you in your time of need by funding any changes to the house, or any additional help and assistance you may need. It could also be used to help members of your family with education, cars, holidays, etc.


Critical Illness Cover For Children


Insurers commonly provide critical illness cover for children for without any additional cost (typically for cover from £10,000 to £25,000).


Read The Small Print


It is important to read and understand the small print so that you are aware precisely what the policy entails and how it is of benefit to you.


There are many conditions listed in the contract and only the most severe and debilitating are likely to result in a payout.


Any illness that is treatable, like types of cancer, are often not included. Always take note of any exclusions in the policy.


Regular Premium Payments & No Cash-In Value


It is vital to ensure you can keep paying the premiums. Critical illness policies demand regular premium payments and will be stopped if you are unable to keep paying the premium.

 
Critical illness cover has no cash-in value – there is no money to be received if you get to the end of the term or the policy is stopped during its term.


Reducing The Premium

 

A healthy lifestyle such as keeping fit, losing weight, and no smoking, should have the effect of reducing the cost of the premium, as the chance of a claim will be less. Age is also an important factor – younger applicants are likely to be offered a more lucrative premium than older applicants.

 

Critical Illness Cover with Life Insurance

 

Buying critical illness with life insurance is generally cheaper than buying it on its own. Many insurers do not provide critical illness cover without life insurance.

 
With such a policy only one payout is permitted – so if you make a critical illness claim you will not be entitled to receive a payout on death.

 

Fixed Premiums?


The premiums are typically fixed - although certain insurers offer ‘reviewable premiums’ which allows them to reappraise the policy and adjust the premium rate accordingly.

 

Which Insurers Pay Out On Any Claims?

 

All insurance companies have to provide data on any claims made. This gives an indication of the ratio of successful claims to unsuccessful claims relative to the amount of premium charged, and may highlight the most favourable providers.

  

Making A Claim


Any claims made should disclose in full any medical condition, as insurers often refuse claims on the basis of incomplete medical and health information. Furthermore, all questions on the application form should be answered as comprehensively as possible.

 

 

 

 

 

 

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