Critical illness cover is designed to provide financial protection upon diagnosis of a specific illness, medical condition or disability specified within the policy. In the event of a claim, a critical illness insurance policy will provide a tax-free lump sum (defined at the outset) to the policyholder who can then use these funds as they wish.
In light of the circumstances, the money received from critical illness cover is typically used to supplement income, pay off outstanding debts, cover financial outgoings or pay for any alterations needed to your home (wheelchair access, for example). A policy will only usually pay out once in the event of a claim during the term and then cease.
Most insurers offer critical illness cover on a set term basis for a specified number of years. Providers will calculate a monthly premium for the amount of cover (sum assured) and term you require based on; Age, Gender, Health and medical record, Lifestyle (alcohol consumption, smoker/non-smoker) and Occupation (some are considered more dangerous than others)
With access to the entire UK Critical Illness Cover market, you know that you will get the best cover possible.
Everyone’s personal circumstances are different and, therefore, our ‘needs’ for critical illness cover may vary.
However, if a long-term illness would place an unexpected financial strain on you and your family, then this type of cover would provide peace of mind.
How will your Mortgage be paid in the event of you suffering a critical illness. If your family would be left unable to pay the mortgage your home could be repossessed.
Are yourexisting provisions, from my employer, the government and savings, sufficient to cover my financial obligations for an indefinite period? If not you may need extra cover.
Would my dependents/family be able to look after themselves if I was incapacitated due to illness or would they need support? Not just your mortgage but to cover everyday bills and living expenses.