Call us

Critical Illness? What is it and do I need it?

According to the ABI every year 1 million workers in the UK find themselves unable to work because of injury or illness.

Critical Illness Cover is a long term insurance policy designed to cover specific critical illnesses as defined by the provider. In the event of diagnosis of a specified critical illness the policy will provide a tax free lump sum.

The number and variety of conditions covered differs widely from insurer to insurer, but there are seven core conditions that tend to be covered by all critical illness policies:

  • Cancer
  • Coronary artery bypass
  • Heart attack
  • Kidney failure
  • Major organ transplant
  • Multiple sclerosis
  • Stroke

Once the policy has paid out the policy then ends and no further premiums or payments are made, although some policies may make smaller payments for less severe conditions.

It is also important to check the policy conditions as not all conditions are covered and some conditions must meet a certain severity basis before the policy will pay out.

So, who needs critical illness insurance?

It is unlikely that state benefits will be sufficient to replace your income in the event of a critical illness. You should consider critical illness if you do not have sufficient savings to tide you over if you are seriously ill, or if you do not have an employee benefits package to cover longer time off work.

What are the benefits?

  • Tax free
  • Lump sum payment
  • Peace of mind

What can it be used for?

The lump sum can be used for whatever you wish. It may be to pay the balance of a mortgage, a recuperation holiday, home adaptations – the choice is yours!

What is the cost?

The monthly payments depend on a variety of factors, including;

  • Age
  • Smoking status
  • Your current health (and your family medical history)
  • Occupation
  • Level of cover required

So, if you are concerned about critical illness and want a protection quotation, or if you would like to review your protection requirements give us a call.