What is Critical illness insurance?

Critical illness insurance or critical illness cover as it is also known. Is an insurance policy that provides financial protection upon the diagnosis of a pre defied illness, medical condition, or disability.

Critical illness insurance will provide a tax-free lump sump (defined on the application) to the policy holder to use as they wish. Due to the nature of the circumstances the money is typically used to supplement income, pay off outstanding debts or to pay for alteration needed to your home (e.g. wheelchair access).

How Does Critical illness insurance work?

Most providers offer critical illness for a specified number of years. Each provider will use their own internal actuary rate and will calculate monthly premiums for the sum assured and term you require based on:

  • Age
  • Gender
  • Health and medical record
  • Lifestyle (smoker/non-smoker)
  • Occupation

 Do I need critical illness insurance?

Everyone’s personal circumstances are different and each individual need for critical illness insurance will vary. If you are unsure as to whether you ‘need’ critical illness insurance, it’s worth considering the following questions.

  • How would my mortgage be paid if I were to be diagnosed with a critical illness and unable to work?
  • Is my existing cover adequate to meet my financial obligations for an indefinite period?
  • Will my dependents be able to financially look after themselves if I were incapacitated and would support be needed?

If you would like to know more about critical illness insurance, make an enquiry below or contact our office for one of our protection experts to discuss your needs in more detail.

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