Critical Illness Insurance

Critical illness insurance provides a lump sum payment if you are diagnosed with certain serious illnesses or disabilities.

The conditions covered typically include long-term and severe illnesses, such as heart attacks, strokes, cancer, multiple sclerosis, Parkinson's disease, or the loss of limbs.

This payout can help ease financial pressures caused by illness, allowing you to cover everyday expenses, pay off your mortgage, or manage medical bills. The money can be used however you choose, with no restrictions.

While you may have other sources of income during illness, such as state benefits or employer sick pay, these might not cover all your needs. It's worth considering how much income you would require if you became seriously ill and whether additional funds would be necessary.

Other options, like income protection insurance, are also available. While critical illness insurance is often a more affordable way to safeguard against illness and disability, it has limitations. Comparing it with other types of illness insurance is crucial to ensure it meets your needs.

Understanding the Payout

• Critical illness insurance provides a single lump sum payment if you make a claim.
• The amount depends on how much coverage you've chosen, and it can be substantial.
• However, if you're unable to work long-term or permanently, the payout might not last.
• Consider income protection insurance as an alternative, which offers ongoing payments for as long as you need them.

Illnesses Covered

• Only specific illnesses are covered by the policy, so it's essential to review the policy documents thoroughly.
• Policies are required to be written in clear, plain English, making it easier to understand exactly what is covered.

Cost Factors for Critical Illness Insurance

The cost of your policy depends on several factors:

• Age: Older individuals pay higher premiums due to increased health risks.
• Sex: Men may pay slightly more as they tend to make more claims than women.
• Health: Those in good health typically pay lower premiums.
• Job: Risky occupations lead to higher insurance costs.
• Hobbies and Lifestyle: Engaging in dangerous activities or habits like smoking increases your premiums.

By understanding these details and comparing options, you can select the policy that best fits your needs and circumstances.

You can buy a critical illness insurance policy from our independent financial adviser, who can look at all the policies on offer and choose the one best suited to you.