What are critical illness policies?

Critical illness policies usually pay a tax-free lump sum if you suffer from one of the illnesses or conditions, or have one of the surgical procedures (collectively known as the "critical illnesses"), covered by the policy.

You should not confuse critical illness cover with other types of health insurance such as:

- private medical insurance which pays for the cost of private medical treatment; or

- income protection insurance which pays you a monthly income after you have been unfit to work (because of sickness or accident) for an agreed period. The income continues until you are fit to return to work or the policy ends.

What do I need to know about critical illness cover?

Before you decide to take out a policy, the insurance company should give you a key features leaflet. This will give you important information about the policy you are considering and what the policy covers. This information can help you compare different companies' policies. Your financial adviser or insurance company will be able to answer any questions you have.

1. What is level term life insurance?
2. What is mortgage protection insurance?
3. Why should I consider buying critical illness cover?
4. What are critical illness policies?
5. Which illnesses are covered?
6. Will any exclusions apply to the critical illness cover?
7. How do I compare critical illness cover policies?
8. What types of critical illness policy are available?
9. What is the cost of critical illness cover?
10. Who can take out critical illness cover?
11. Can I increase my cover after the policy starts?
12. How do I apply for critical illness cover?
13. How do I make a claim?
14. What should I do if I want to complain?

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