Critical Illness Cover

What is it?

Critical Illness Cover, also known as serious illness cover or dread disease cover, provides a lump sum on diagnosis of one of a range of conditions defined within the policy document.

About 80% of all claims are for Cancer, Heart Attacks and Stroke which are core conditions under most policies. In addition to these core conditions most of the better plans offered by reputable international insurers have 30 or more other conditions covered.

How Can It Help Me?

Over the last 40 years, your prognosis on learning that you have had a heart attack, a stroke or being diagnosed with a serious illness like cancer has improved dramatically. This means that you are less likely to die from a serious medical condition. Whilst this is good news, the impact of these conditions on health and consequently earnings ability may be profound. Long periods of recovery for a main earner can impact the family finances as seriously as their death.

When Would I Use It?

Life insurance companies do not dictate what money from a critical illness plan must be spent on. Typically, Critical Illness Cover is bought to repay a mortgage or other loan secured on the family home. As the mortgage is usually one of the largest bills, repayment reduces the family expenses and enables other finances available to last longer. Other uses costs of adapting a home to meet the requirements of a person following a serious illness which may have left them debilitated or advanced funding for university fees.

What Else Should I know?

As you are more likely to suffer a serious illness than die before the age of 65, the cost of this type of insurance is higher than life assurance.

If you have a chronic medical condition or a history of poor health, you may find the policy is not available to you or is prohibitively expensive.

You should speak to a qualified adviser before committing to this type of policy.

What Should I Do Next?

Please contact us for more information on rates and providers.

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