Critical Illness Cover
What do you do when your loved ones leave you unexpectedly. All of a sudden, you find that you are left with bills and obligations at your most trying time. You may feel like there is nobody out thee that understands and nobody that can help. But if you look a bit harder, you’ll see various schemes and insurance policies that could help you in your hour of need. Critical illness is one of these. It differs from family income benefit mostly due to the fact that when it pays out, it’s as a lump sum instead of gradually. Of course, due to the fact that this insurance policy precludes you to be critically ill, there is another key difference. Let’s have a further look at some of the most significant points involving this form of cover.
Benefits and Features
- Long term insurance policy
- Tax-free, one-off payment
- Covers a series of the most serious illnesses and ailments.
- Top-up cover in case your income doesn’t cover your outgoings.
- Depends on various factors like age, job and value of cover.
- Not mutually exclusive cover, can have both life cover and critical illness simultaneously.
- Unlike other similar covers, it is available for children too.
How does it compare to other forms of cover?
Critical illness cover is designed to be long term. You could be paying premiums from anywhere to a few years to the equivalent of a lifetime. This obviously means that it suits a number of conditions, often even more serious ones such as a cardiac arrest, instances of cancer depending on how widespread and severe it is, or liver failure, depending on the insurer. This gives it good coverage around the board and makes it less exclusive than most standard forms of life cover. To counter-act this, if death occurs, this is often not covered. Recovery is often required for a payout, making it potentially risky in a scenario that could be fatal.
Critical illness cover may be worth considering if your family has a complicated health history, such as heart attacks or other genetic ailments. The payments tend to be quite large ordinarily due to the relatively lowered chance of paying out. The policies offered to most of us may extend up to 7 figures, but it’s worth nothing that in 2017, 90% of critical illness cover claims were paid out, a figure up from previous years. The average payout over that period of time was £68,000, a significant sum to help with the new problems a family would face.
So what else do I need to know?
Critical Illness Cover is one of a number of different forms of insurance which are there for us in our time of need. The advantage with this form of cover is that is specialises in helping when there are serious conditions present. It won’t cover all illness and circumstances such as some cancers, but it does a good job of protecting the particularly vulnerable.
It should be said that critical illness cover may not always be needed. It is really there for those in critical situations. Other forms of cover may better suit someone who believes that they are at a lower threat level. However, as mentioned, it may still not be perfect as it pays for a lump sum. If you suffer from a chronic illness or disease, sometimes it may be better to get cover that pays consistently over a period of time, such as with family income benefit.