Critical illness cover is an insurance product which pays out a cash lump sum if the policyholder is diagnosed with one of a number of listed critical illnesses. The list of illnesses covered by critical illness cover can differ, but typically cover is provided against certain forms of cancer, a heart attack or stroke, multiple sclerosis or the loss of limbs.
The illnesses covered by critical illness policies often vary between insurers, so it is essential you look carefully at the cover provided by each before you make a decision. Carefully check the policy documentation and be aware that pre-existing conditions tend to be excluded from the policy, although some insurers will base the cover they provide on your personal medical history.
Why might you need critical illness cover?
Similarly to life insurance which pays out a lump sum to your family upon your death, critical illness cover pays a lump sum if the policyholder is diagnosed with a critical illness which is listed in their cover. However, within a given time scale it is more likely that you will develop a critical illness rather than die.
If you do develop a critical illness, the lump sum you receive could be invaluable when it comes to meeting the cost of medical treatment or making adaptations to your home. In fact, you are unlimited in how you spend the money, so you may wish to pay off your mortgage or save the money to secure your family’s financial future.
An important distinction to make between critical illness cover and other policies such as income protection insurance, is that critical illness cover provides a one-off lump sum, and not a regular income. If you are of working age and would be unable to cope financially if you lost your income, it is important to carefully weigh up the benefits of income protection and critical illness cover before you make a decision.
How much does critical illness cover cost?
The price of critical illness cover varies depending on your individual circumstances. Factors such as age and personal medical history will determine the price. For a quote or for further information about critical illness cover, please call our experienced advisers on 1890 917 917 today.