What is Critical Illness Insurance?
Critical Illness insurance provides financial assistance should you be diagnosed with an illness which is deemed critical, such as a heart attack or a stroke. If you make a successful claim on the critical illness policy you will receive a lump sum of money. This payment allows you the opportunity to focus 100% on recovery, rather than worrying about bills and payments.
Increased Costs Due To Illness
Having a critical illness is likely to mean you will need time away from work, this can bring with it huge financial implications. ‘83% of cancer patients are on average £570 a month worse off due to their diagnosis’ MacMillan 2013. This is due to a combination of circumstances such as: inability to work, increased costs traveling to and from hospital and the cost of treatments.
Lump Sum Upon Diagnosis
Critical illness insurance will pay out a lump sum upon the diagnosis of a condition cited on the provider’s policy. To help you keep up with the costs of everyday life. It can be used to cover mortgage or rent payments and all the associated costs such as water and electric bills. It can also be used to cover the costs of hospital and doctors surgery visits, and of any required aids to give you greater mobility within or outside of the home.
What’s Not Covered?
Any conditions you had before you took the policy out will probably not be covered. Before you take out the policy you will be asked about any underlying conditions you may have and any family history, which could impact your health in the future. It’s important to be completely honest when answering these questions, as misinformation can be considered fraudulent and is likely to cause your pay out to be denied.
Critical Illness and Life Insurance
Critical illness insurance does not pay out if you die. This includes dying from a critical illness without realising it was present, as you would no longer be alive to make the claim. However it’s important to note that critical illness insurance tends to be the same price with life insurance included. Having both policies in place will then guarantee you or your family financial protection whatever should happen.
Claiming Only Once
Most critical illness policies let you claim only once. However there are a few providers who base the claims on severity and offer percentage based payments. Comparing providers is essential as they each offer varying degrees of protection and each provider’s cover has different benefits and additional support. It is always wise to seek advice when buying and comparing financial products.
What Is Serious Illness Cover
Serious illness cover is similar to critical illness insurance. However the provider vitality covers up to 166 conditions of varying stages, instead of covering a set number of specific illnesses. vitality are also unique in allowing you to apply for a payment more than once. If you were to be diagnosed with a stage 2 cancer, and claimed a pay out of 20% should the condition escalate you would be able to take a further payment up to the remaining amount.
What If You Were Unable To Return To Work
Illnesses like cancer, heart attacks and strokes can all vary in degrees. Being diagnosed with one of these could mean you are no longer able to work, or that you no longer want to work. A critical illness policy can provide you with the finances to make sure that this is an option, instead of causing worries and stress for you and your family.
Insurance providers also often provide additional benefits. These can include access to medical support helplines and counselling services for you and your family. It’s worth checking with your adviser to see which provider offers the best benefits with its policies as these could be beneficial in the future.