Guide to Critical Illness
Critical illness is a protection insurance policy that’s designed to pay out in the event that you’re diagnosed with a critical illness listed within your policy.
Being diagnosed with a critical illness can put strain on your lifestyle, it can prevent you from going to work however the mortgage and day to day bills will still need to be paid. With this type of protection policy, you will be receiving a sum lump which you can use however you see fit and reliving financial worries whilst you get better.
What illnesses are covered in a critical illness policy?
Every insurance provider will have their own list of what they cover but there are types of illnesses that could be covered:
- Brain injury
- Cardiac arrest
- Dementia including Alzheimer’s disease
- Heart attack
- Heart surgery
- HIV infection
- Kidney failure
- Liver failure
- Loss of hands or feet
- Loss of speech
- Paralysis of limbs
- Parkinson’s disease
- Severe Crohn’s disease
- Severe mental illness
- Third degree burns
What affects the cost of critical illness cover?
The monthly premiums can vary depending on your personal circumstances. The cost of your policy will be affected by:
- Your age
- Whether you smoke or have smoked
- Your current health
- Your family medical history
- Your occupation
- Level of cover
How much critical illness cover do I need?
The amount cover will depend on a few factors such as:
- Work benefits
- Your salary
- Mortgage or rent payments
- Other insurance products that you may have
As critical illness is commonly paired with life insurance and if you have life insurance, you may opt for a lower level of critical illness cover as you have another policy in place.
You can adjust the amount of cover you take out according to your needs and monthly payments.
What can I use the money from a critical illness pay out for?
Once you received your critical illness pay out, you can use the money how you see fit which could be:
- Day to day spending – food shopping, water & gas bill, council tax, mortgage and rent payments
- Pay off some of your mortgage off
- Travel expenses to specialist hospitals
- Home modifications
- Extra care and support – e.g. nurses, healthcare home visitors
- Go on your dream holiday
- Have it as a safety net for the future
Can you get Critical Illness as a single policy?
Many people often take out critical illness cover when they take out life insurance, however it’s available as a single policy or alongside your life insurance.
Can I get critical illness if I have a pre-existing medical condition?
It’s still possible to get critical illness cover if you have a pre-existing condition, it will depend on what the medical condition is. Sometimes an insurer won’t mind it or they will include it from your policy.
What this means is that you won’t be able to make a claim if it’s related to your pre-existing medical condition.
Can I make a claim if I’m injured and unable to work?
If you have a minor injury such as a broken arm or leg, you won’t be able to claim this on your critical illness policy – this is something that could be covered with an income protection policy.
Whilst if it’s a more serious injury such as head injury which has led to hospitalisation for multiple days, loss of hands or feet or surgery, this will more likely to be covered with your critical illness policy. This will depend on what’s covered in your critical illness policy.
Can critical illness cover also cover my children?
Some insurance providers can also provide cover for your children within your policy. One of the insurers that we work cover children’s cove as well as pregnancy cover.
Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.