What are critical illness policies?

Critical illness insurance is designed to protect against serious illnesses. Taking out a policy ensures that you receive a payout if a disability or serious illness develops. According to The British Heart Foundation 1 in 3 people in the UK will suffer from either a heart attack, stroke or cancer, and these issues will be covered by all critical illness policies.

Critical illness insurance helps to provide calmness for both the person who has the policy and their family, as the payout can be put towards treatment costs, household bills and general living costs, which will relieve financial worries at a time of great stress.

Who can profit from critical illness cover?

If you have kids, you are married or live with a partner, or you feel that it would be difficult to cope financially if a serious illness springs on you, critical illness cover is a fine idea. It is regularly a more advantageous choice compared to life insurance, because the chance of suffering from a critical illness at some point in your life is high; however, most companies put forward critical illness cover alongside life insurance.

How will critical illness cover work?

Critical illness policies pay out a lump sum in the unforeseeable event that the owner of the policy is discovered to have a condition of ill health which is covered in the parameters of their policy (you will find details of the infirmities covered by your plan in your policy document – if you are unable to find this, contact your insurance provider who can tell you if you are covered for a certain illness). Most insurance policies cover core illnesses and more comprehensive policies provide cover for additional illnesses. All policies should cover cancer, heart attacks and strokes. The money you receive from the insurance company is tax-free and will be paid out in a lump sum.

Why is critical illness cover beneficial?

It is beneficial to have critical illness cover, since it is stressful enough to have been told you have a serious illness without having to worry about how you are going to keep up with bills, mortgage payments and provide for your family. This kind of cover provides relief from financial worries and can help to pay for treatment or adaptations to your home. Many people recover from critical illnesses but find that they have accumulated debts as a result of being unable to work while they were ill. Critical illness cover helps to prevent this from happening.

Finding a policy

There is a multitude of insurance companies out there competing for your business, so it can be confusing to read through the different deals and policies. However, it is worth spending a little time doing some research as you could save funds and discover a policy that fits your needs perfectly. You can use comparison sites, telephone companies or read the company leaflets to learn about the policies on offer. Differing levels of cover exist and you can modify your policy to fit in with your needs and inclinations.

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