Critical Illness Cover

Is It Time To Review Your Critical Illness Cover?

Ensuring you have the most cost effective and comprehensive critical illness cover in place is essential when thinking about the future of both yourself and your family should the unwanted unexpectedly arise. Making sure that you can continue to support yourself and your family is one of the most prudent actions we can take.

Critical Illness Cover is in essence a long-term insurance policy covering serious illnesses and when needed will pay out a one-off, tax free payment, which can be used to provide financial breathing space and cover the unforeseen costs of an illness; such as medical treatment or any alterations which may be needed to your home.

Many people with existing Critical Illness Cover never think to review their policy. As time goes by advances in medical science mean that new treatments and procedures are used to treat illnesses, however many older critical illness policies require treatment with certain procedures rarely used today before a pay-out would be approved.

In recent years we have also seen a large focus on “less advanced illnesses” and the importance of still having some form of cover against them, if not the full sum assured – more “severity based” illnesses for example. Typically, many historic policies would have not had this focus therefore you could be at risk of losing out on your right to claim. A review of your policy could ensure that you give yourself the best chance of receiving a pay-out should the worst happen.

Every year, 1m workers in the UK unexpectedly find themselves unable to work because of injury or illness (Association of British Insurers 2015)

It is important not to confuse Critical Illness Cover with life insurance. Though they are sometimes sold together, they do not provide you with the same cover. Critical Illness Cover will protect you in the event of:

  • heart attack
  • stroke
  • certain types and stages of cancer
  • conditions such as multiple sclerosis
  • accident related illnesses such as paralysis, blindness, intensive care cover

…amongst many others which your adviser will be able to talk you through.

Many policies will also consider any permanent disabilities that are a result of injury or illness but as per with all aspects of Critical Illness, it depends on the provider.

Critical Illness Cover for your children

Sadly a child becoming critically ill is now the 4th most common claim area over recent years. As such many providers have really recognised the importance of providing children’s critical illness within their policies. Furthermore, some providers now offer specific children’s illness definitions and some, even from birth…

Does your current provider offer your family that amount of financial security?

If you Don’t Have Critical Illness Cover?

Sometimes the question we have to ask ourselves is, can we actually afford to survive a Critical Illness?? Widely regarded as one of the most crucial protection products, in that it covers the most common conditions such as those listed above – it is a misconception that cover can be either too expensive or may not pay out should you make a claim. In truth, over the years cover has become more affordable and it is now estimated that in excess of 95% of claims made are paid out. (Association of British Insurers 2018)

How much cover should I have?

This will be entirely up to you. Your adviser will be able to find the right level of cover for you depending on your circumstances, however factors to take into account include:

  • the amount of mortgage you have outstanding
  • any pre-existing or hereditary conditions
  • your personal and household income
  • any loans repayable you may have
  • the age and number of dependants you have

To speak to an adviser today call us on 01249 474959 or fill out the form below and we will be in touch