critical illness cover

What is Critical Illness Cover and Do I Need It?

Each year, 100,000 people suffer from a stroke in the UK. Two-thirds of these people leave the hospital with a disability. 

Critical illnesses can happen to anyone at any age. Yes, there are certain predispositions but even young people are at risk.

In the UK, 164 people out of every 100,000 live with multiple sclerosis. MS is a disease that targets the young. Most diagnoses happen to those between the ages of 20 and 30.

This is where critical illness insurance is so important for you and your loved ones.

Read on to learn all about critical illness cover, what it covers, what it doesn’t, and important things you must do in order to be approved.

What is Critical Illness Cover?

Critical illness cover or insurance is a lump sum of money that your insurance provider gives you if you are diagnosed with certain critical illnesses or disabilities.

Often, people with critical illnesses need to leave work. The aim of this lump-sum payment is so that you are able to focus on your treatment without worrying about funds to pay for your regular bills and mortgage plus medical expenses. 

The money you receive can be used at your discretion. You can use it to hire a personal support worker or to pay someone to walk your dog and cook and clean. It’s totally up to you how you will use your payout.

Some people have income from state benefits or sick pay from their employers. But, this money might not cover all your expenses. Especially if your illness comes with new medial expenses for drugs and equipment. 

How Does Critical Illness Cover Work?

With any type of insurance, you pay a monthly premium for coverage. Then, when you need it, you submit a claim. Your claim is reviewed and if accepted, you will get a payout.

It’s important to understand that critical illness cover only ways for listed conditions up to a maximum amount.

Let’s say you get a 20-year policy with an insured amount of £100,000. If you were to become critically ill anytime between when you sign the policy and the 20th year, you would get the £100,000.

Do I Need Critical Illness Insurance?

Critical illness cover is a good investment for many people. 

First, you should check if you already have some type of illness insurance. Perhaps you have it through your mortgage or life insurance policy.

Also, find out what benefits your employer pays if you are unable to work due to illness or disability.

It’s a good idea to also take stock of your finances. Do you have savings that you could rely on if you had to stop working? If so, how long would that last you?

Finding out this information will give you a good sense of whether you need this coverage or not.

You might not need it you have a partner that can cover all your living costs and medical expenses if required. 

Critical Illness Cover Exclusions

Critical illness insurance doesn’t cover every single type of illness. Also, with the illnesses they do cover, you usually have to be extremely ill in order to claim payment.

Your policy might also not cover illnesses that you have had before. 

Before you sign up for a policy, read the fine print carefully. Ask questions to make sure you fully grasp what is not covered.

Critical Illness Cover Cost

Depending on the policy you chose, there will be a set premium. Your premium is determined by a variety of factors such as age, gender, pre-existing conditions, family health history, and so on.

You can influence your cost to a certain extent by taking good care of your health. Losing weight and quitting smoking, for example, are concrete ways you can show the insurance company that you take your health seriously. 

Premiums are usually not fixed. They tend to go up as you age because the likelihood of you making a claim also goes up. 

How to Buy Critical Illness Insurance

You can buy a critical illness cover policy directly from any insurance company that provides this coverage. 

You can go online and find sites that compare various policies. You can get a quote so that you can compare policies. 

You can also work with an independent financial adviser who can help you find the right policy for your needs.

Keep in mind that you might need to pay to work with some advisers.

You might also be offered critical illness coverage when you take out a mortgage. Yet, this policy might not be the best option. Even if you are signing mortgage papers it’s wise to compare that offering to other policies.

The Importance of Full Disclosure

One thing that you must know before you sign up for a policy has to do with full disclosure. 

In order to avoid having your claim denied when you need that money, you need to fill in your application carefully. You must answer all the questions in detail and leave nothing out.

Otherwise, insurance companies can use this as a reason to refuse your claim.

Critical Illness Cover Gives You Peace of Mind 

While we all hope that you will never need to use your critical illness cover, it is the type of safety net that you want in place. Having a policy gives you peace of mind that even if the worst were to happen, you and your family’s needs would be taken care of.

Unless you have some other means of providing for your family during a critical illness, having an insurance policy makes sense.

Still have questions? Contact us. We’re happy to help and can offer you free quotes fast.

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