Critical Illness Insurance

No one likes to think about becoming seriously ill, and the good news is, most of us wont, but with one in six women and one in five men will have a serious medical condition at some point in their lives. Improvements in medicine have seen 85% of women survive breast cancer, but 83% were hit by financial crisis as a result of diagnosis, which is just one of many scenarios critical illness plan could help address. Critical illness will be there for you when diagnosed with a serious illness, to provide a lump sum to typically help meet the loss in income, pay of off your debts, mortgage or means to change your surroundings, dependent on your needs.

Critical illness is important for both single people to help ensure you can maintain your independence, or in a family environment, to allow your partner to continue to work and maintain your lifestyle. The financial impact on your partner should a serious illness occur can be devastating, with their ability to work being seriously reduced, further impacting on the financial crisis.

What does critical illness cover, cover?

Your critical illness insurance will pay out if you suffer one of the specified conditions listed on your policy. Your policy will specify how serious the condition must be and not all conditions will be covered. The number of conditions covered vary from providers, but typically share seven key conditions, as required by the Association of British Insurers (ABI):

  • Certain types and stages of cancer
  • Coronary artery bypass.
  • Heart attack
  • Kidney failure
  • Major organ transplant
  • Stroke
  • Conditions such as Multiple Sclerosis

As well as the above, most policies will also pay out if you are permanently disabled as a result of injury or illness. There are different types of critical illness insurance policies available, so it’s important to know exactly what’s covered when you take your policy. After a successful claim, the policy will end. However, successful claims for people with no other way of supporting themselves can make a big difference in keeping them going financially, just when they need it most.

What is not covered by critical illness insurance?

Some serious illnesses might not be covered by a critical illness policy. For example, some cancers and ‘chronic’ or long-lasting conditions that could mean you can’t work might not be covered. Pre-existing health conditions you knew you had before you took the insurance are very unlikely to be covered. Unless you have a combined life insurance with critical illness policy this type of insurance does not pay out if you die.

Is critical illness insurance good value for money?

Critical illness cover will only pay out if you are diagnosed with one of the illnesses specified in the policy. It will not cover you if you can’t work due to any other illness or redundancy which is more likely to happen. As with all insurances, you need to be sure that you can afford the premiums for the term and the sum assured is adequate for the purpose. If the monthly commitment But at the same time a lessor affordable amount of critical illness will still help more than no cover at all.