Critical Illness

What is it?

Critical Illness Insurance pays out a tax-free lump sum upon diagnosis of certain illnesses, on the condition the policyholder does not die within a certain time period after diagnosis.

Why do I need this?

An individual becoming critically ill often puts a larger strain on household finances than when an individual dies.

Whilst you may be critically ill, you are still alive. However, you could now be living with a life changing critical illness with less income entering the household.

Important points to consider are:

Liabilities

As a result of a critical illness, an individual may no longer be able to work, or only be able to work reduced hours. However, financial commitments, such as a mortgage, and other living expenses, remain the same or may even increase. Funding will be required to bridge the gap and maintain an individual or family’s current lifestyle.

Costs Associated with a Critical Illness

The impact of a critical illness can be long lasting, and life changing medical conditions have associated costs. These could include paying for in home care, home adjustments, paying for frequent journeys to hospital or for private healthcare.

 FAQs

  • The protection offered through your employment contract is only available to you as long as you remain in this employment. If you were to leave, you are essentially unprotected and you and your family are at risk should anything happen to you.

    Therefore, considering this, and the payout amount needed, having your own life insurance policy is important to consider.

  • Yes! Although your spouse or partner may be earning, you contribute significantly to family life. You have a full time job caring for your children and running the household.

    If you were to become critically ill, there is a high chance that you will be unable to carry out the same tasks as before, if at all. Therefore, childcare and maintaining the home will likely need to be carried out by a third party, and there is a cost to this. However, this cost could be covered by a critical illness insurance payout.

  • Although the risk of being diagnosed with a critical illness is less in younger age groups, this risk increases as you get older.

    Therefore, it is worth considering locking in a good premium rate whilst you are viewed by insurance providers as a low risk prospect, so that when you are at greater risk of having a critical illness, you are paying a minimal amount for your protection.

  • That’s where we can help. Send us an email or fill out the enquiry form in the Get in Touch section, and one of our advisers will be in touch.

  • Yes, you should still apply, but the earlier, the better. Undoubtedly if you have a significant family history of certain critical illnesses, this is likely to affect the premium and terms you can obtain on a critical illness policy.

    However, if you know you are at risk of being diagnosed with a critical illness, it is only natural that you should want to protect yourself, and any dependents, financially.

Critical Illness Insurance policies have no cash value and will not pay out at the end of the policy term without making a valid claim. If premiums are not maintained the cover will lapse.