Critical illness cover
Critical illness cover can help to support you and your family in the
event that you are diagnosed with a life threatening condition and can
no longer work. If you were to become seriously ill would your family be able to cope financially?
A critical illness can affect anyone at any age. In the event of being unable to work due to critical illness, having insurance in place can reduce some of the financial stress of the situation. Some people may use their savings or rely on an employment benefit package, while others may find that Critical Illness Cover is their best option.
What is critical illness cover?
Critical illness is a type of insurance that will pay out a tax-free lump sum if you’re diagnosed with a serious illness. It can’t be used as a method of saving or investment and has no cash value unless a valid claim is made.
Most people choose to use the money to help pay off their mortgage and relieve them of that financial burden. However, you can use the money in any way you wish. So it can help to clear other debts, go towards your medical bills or help to adapt your home to cater better for your needs. You might also wish to invest some or all of the money to help generate an income for your family.
Most policies will only provide the payment as a lump sum rather than in instalments as it’s not intended as a form of income. You can choose how much you want the policy to cover and how long you want to pay into this insurance for.
Critical Illness Insurance FAQ
You never know what life will throw at you. That’s why you can never be too careful when it comes to protecting you and your family. At Clever Mortgages we can help you find the right type of critical illness cover that best suits you.
If you were to be diagnosed with an illness or disease that left you unable to work, your family will be the ones responsible to pay the mortgage and settle bills. But if you’re the main income provider for your household, they may struggle to make ends meet without your income.
Critical illness cover ensures that if you were made ill, you and your family would receive the financial support they need, giving you all one less thing to worry about.
Each insurance provider will have policies that may exclude certain illnesses or medical conditions. In general, critical illness policies cover heart attacks, cancer, multiple sclerosis, heart bypass surgery, kidney failure, stroke, and major transplant surgery.
We carry out full assessments to ensure that your insurance covers you for any pre-existing illnesses or illnesses that run in your family.
Critical illness cover will not pay out for minor illnesses, accidents or death. To be covered for these events you should consider income protection and life insurance.
The cost of critical insurance cover, as with life insurance, depends on your personal circumstances including your age, lifestyle, medical history and whether you’re a smoker.
If you have a job with a higher risk than others, you might find that this can increase the cost of your cover.
Additionally, family history is also taken into consideration, so if you do have an illness that runs in your family then your insurance is likely to be higher because there’s a higher chance that you could also inherit this.
Other insurance options
If you are considering taking out critical illness cover, you may also want to look into other insurance options such as life insurance and income protection.