Critical Illness cover is also known as Critical Illness Insurance. It is a long-term insurance policy and provides you with cover in the event of a serious illness. The policy will pay you a tax-free lump sum should the worse happen and you are diagnosed with an illness that is covered under your specific policy wording.
Not all medical conditions are covered under a Critical Illness policy and there will certainly be guidelines as to the severity of your condition in order for you to be able to claim under your policy.
Types of medical conditions that may be covered:
The conditions below are an example of the type of illness that may be covered under a Critical Illness Insurance policy. The list is not exhaustive and different providers will offer cover for some/ all or maybe additional conditions than those listed. Please ensure you check the conditions covered on the quotations you receive.
Alzheimer’s Disease, Bacterial Meningitis, Blindness, Cancer, Cardiac Arrest, Deafness, Dementia, Heart Attack, HIV Infection (from transfusion or work accident), Kidney Failure, Liver Failure, Loss of hand or foot, loss of speech, Motor Neurone Disease, Multiple Sclerosis, Parkinson’s Disease, Spinal Stroke, Total and Permanent Disability.
With all of the conditions show there will be specific criteria that confirms at what point the policy will pay your lump sum. As an example, there will be some cancers that will not be eligible under a Critical Illness policy. This tends to be when they are localised, are showing no signs of spreading and are successfully treated.
Do you need Critical Illness cover?
If you do not believe that the state benefits would pay you enough for you and your family to live on in the event of a Critical Illness, you do not have savings that would tide you over should you become seriously ill or disabled and you are not part of an employee benefits scheme that will cover you for long-term sickness then you should consider investing in a Critical Illness Insurance policy.
When you apply for Critical Illness cover it is essential that you disclose fully your medical history and any information that you feel the insurance company may need to know.
What is the cost of Critical Illness cover?
The cost of Critical Illness cover will depend on your age, whether you are a smoker (or have smoked), your health and family health history, your occupation and the amount of cover you want to take out (the total lump sum you would receive)