There are lots of types of insurance policies that are available to protect your finances in case of an accident, redundancy, death or natural disaster. However, in some cases these may not be adequate or suitable for your needs. If you do become seriously ill, Critical Illness Cover could provide you with the financial resources you need to cope with your condition. If you’re not sure whether or not you need the cover, here are a few reasons why Critical Illness Cover could be right for you.
What is Critical Illness Cover?
Critical Illness Cover is a type of long term insurance policy that covers a range of specific illnesses. It pays out a lump sum if you’re affected by one of the conditions named in your policy. Like Your Money Advice says you’ll get “a one-off payment, to help pay for your mortgage or rent, debts, or pay for alterations to your home such as wheelchair access should you need it, but it’s your choice how you spend it.”
The illnesses named in your policy will be clearly stated in the terms and conditions. In general it covers things like strokes, heart attacks, certain types of cancers and long term conditions like multiple sclerosis. If you fall ill, you’ll generally receive a one off payment although there are ways of changing this to be a monthly income instead. Once the payment has been made, the policy is effectively finished and you will no longer be covered by your insurer.
Do you need Critical Illness Cover?
If you have limited savings, or your spouse’s income isn’t enough to cover your essential household needs, Critical Illness Cover will help to cover important expenses in case you fall seriously ill. You should also consider investing in the cover if your employer doesn’t offer comprehensive benefits in case of long term incapacity.
However, it’s important to remember that Critical Illness Cover won’t pay out for pre-existing conditions. So, if you’ve already suffered a major health problem, you’ll struggle to get cover.
Is it worth it?
When deciding if Critical Illness Cover is right for you, it’s a case of weighing up the cost of the monthly payments with the likelihood of a pay out. Read the small print of the policy you’re considering very carefully to see exactly what’s covered. Some policies won’t pay out for certain types of cancers or other illnesses, so the quality of the policy you are taking out should be a key factor rather than just the cost.
For some people, Critical Illness Cover can be a real lifesaver. Providing them with crucial funds when they need them most, it can cushion the financial impact of serious illness and ensure you and your nearest and dearest are looked after if the worst should happen.
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Written by: Andrew Page