Covering yourself against critical illness

Most people like to have the peace of mind that they are covered against a range of eventualities, and insurance cover in the UK is designed to provide valuable financial protection against a range of possible events. Our health is particularly important to us, and although we can’t protect ourselves against becoming ill with insurance cover we can protect ourselves against the financial implications with insurance such as health and medical cover and dental insurance cover.

However, there is also another type of cover available that does not actually cover the cost of treatment for illness like health and dental insurance, but ensures that finances aren’t an added worry in the event that we become really ill. This is known as critical illness cover, and is designed to pay out to policyholders that are diagnosed with a critical illness during the term of the cover.

Every year many people are diagnosed with a critical illness, and anyone that has been diagnosed or knows someone that has been diagnosed with such an illness will know just what a stressful situation it can be. The last thing that you need when you are diagnosed with a critical illness is to be worrying about money. At the same time critical illness means that you could struggle to keep up with repayments on your financial commitments including your mortgage, and this can lead to further unnecessary stress that can make the situation even worse.

You can take out critical illness cover as part of a life insurance or mortgage protection policy with many insurance companies, and some also offer this type of cover as a stand alone policy. The cost of critical illness cover can vary from one provider to another, and it is therefore worth comparing different providers in order to find premiums that suit your budget. There will usually be a three month wait before any claim can be made after taking out cover, and of course you cannot have been diagnosed with the illness prior to taking out the policy.

A number of critical conditions should be covered by your critical illness cover, and this include kidney failures, strokes, heart attacks, cancer, major organ problems, and a number of others. However, you need to remember that critical illness policies can come with many exclusions and restrictions, and you should pay careful attention to these when you take out the policy. For example, there may be restrictions with regards to conditions such as heart attacks and cancer.

Basically, critical illness cover is a type of insurance cover that pays out a lump sum in the event that you are diagnosed with one of the critical illnesses that are listed in the policy. Most insurance companies will require you to survive for at least one month from diagnosis before they will pay out. The number of critical illnesses that are covered by these policies can vary from provider to provider, and it is important to check this before you actually commit to any particular policy.

Critical illness means that you can benefit from a lump sum payment if you are diagnosed with a serious illness that stops you from working or earning money to pay your bills, mortgage, and other outgoings. This means that you do not have to worry about money at a time that is likely to be fraught with worry and stress as it is. The good news is that you get to keep the money even if you then go on to recover from the illness, although your policy will then, of course, be null and void.

When you consider the number of people in the UK that are diagnosed with a critical illness each year it reflects the importance and value that this type of policy can have. Around 25% of women and around 20% of men are affected by a critical illness before they reach retirement age, and this means that they are likely to have financial obligations such as a mortgage at the time that they are diagnosed. Some may even have a young family to look after, and this is where critical illness cover can prove particularly useful, as it means that your family won’t have to struggle financially at a time when you are unable to earn.

It is important to shop around for your critical illness cover. The eligibility requirements can vary from one provider to another, and the age range for this cover is often between 17 and 70 years of age. You can select term cover – to run in line with your mortgage term for instance, Alternatively you can opt for indefinite cover, which will protect you on an ongoing basis until you either cancel the policy, claim on the policy, or pass away.