Critical Illness cover is a form of insurance which is designed to pay out a tax-free lump sum in the event of the policy holder being diagnosed with a specified illness or medical condition during the term of the policy.
One in two people born after 1960 will develop some form of cancer in their lives. It should give everyone peace of mind that insurance companies are still providing Critical Illness insurance. The surprising fact is that either a lot of people don’t have Critical Illness insurance or people mistake terminal illness cover for Critical Illness cover.
Why is Critical Illness cover so important?
Due to advances in medical science, more and more people are surviving Critical Illnesses. You could be unable to work after suffering a Critical Illness and this would impact you and your family’s ability to maintain rent, mortgage or credit commitments. Critical Illness insurance is designed to alleviate the financial burden whilst you recuperate and hopefully one day get back to work.
Know what illnesses are covered
Not all Critical Illness policies are the same and they vary hugely between different life assurance companies. Some companies only have 5 Critical Illness definitions whilst others have over 150 definitions. It’s very important that clients get the right advice with regards to Critical Illness, the last thing anyone would want would be to suffer and illness and subsequently find out that they are not covered.