A Critical Illness policy will provide you with a lump sum of money if you are diagnosed with certain illnesses or disabilities. This type of insurance is specifically designed to provide you with support throughout the course of your illness.
The fortunate among us will never be required to use Critical Illness Insurance. However, if being ill has left you out of pocket, using Critical Illness Insurance can be crucial in assisting you with money for things such as everyday expenses, paying off your mortgage, medical expenses, or whatever you deem necessary.
Who could benefit from Critical Illness Insurance?
A critical illness can affect anyone at any age and disturb life as you know it. In the event of being unable to work due to critical illness, it is important to have a plan in place to alleviate the financial stress of the situation.
Many employees are not covered by any sort of sickness benefit or medical insurance and Statutory Sick Pay or state benefits may not be enough to account for the loss of your income if you are unable to work due to illness.
As a result, if you and your family heavily depend on your income and you don’t have enough savings or an employee benefits package to cover your time off work due to sickness, Critical Illness Insurance may be appropriate for you.
How does it work?
Critical Illness Insurance will pay out one tax-free lump sum if you get one of the specific medical conditions or injuries covered.
Insurance companies vary on how many ailments, conditions, and injuries they include. The most comprehensive critical illness policies can cover up to 50 different conditions or even more. Subsequently, others may be far more limited.
There are however limitations to Critical Illness Insurance policies in that they don’t cover every type of illness.
How much does it cost?
How much your critical illness cover costs will depend on different variables, concerning how healthy you are and your lifestyle choices.
The cost of your policy will be impacted by variables such as:
- Your age
- If you are currently a smoker or have previously smoked
- Your overall health and your family’s medical history
- If you are employed in a high-risk job
- The level of cover you wish to receive
It is important to bear in mind that if you are considered to be at high risk of developing a particular condition, perhaps due to existing health issues or your family’s medical history, then this illness may be excluded from your policy. If it is included, you may be subject to a higher premium as a result.
How can The Mortgage Brokerage help?
Critical Illness Insurance can offer peace of mind, providing you with security to fall back on in the event that you fall ill unexpectedly and are not covered by your workplace.
If you are keen to purchase a critical illness policy, you can do so through an independent financial adviser, such as ourselves here at The Mortgage Brokerage. Working with a financial adviser, you will be able to secure a policy that suits your needs through the insightful, whole-market advice that we can provide.
Here at The Mortgage Brokerage, we can help create a clear picture of your options and advise you on what sort of policy best suits you. Our professional advisers will work hard to ensure that you secure an insurance policy that meets your needs.