If you’re lucky, you’ll never need to make a claim on your critical illness insurance. However, in the event of a major health problem, this policy could save the day...
Critical illness cover is designed to provide you with a lump sum of money in the event that you are diagnosed with an illness or disability. Your policy is about more than simply covering medical costs alone, and is intended to provide peace of mind and support you throughout the course of your illness, and hopefully, your recovery. Today, we’re going to take a closer look at Critical illness insurance and help you to decide whether this policy is worth the cost.
What exactly is critical illness cover?
A critical illness policy will pay out a one-off, tax-free payment if you are diagnosed with a condition that is covered within the policy. Conditions covered vary between different insurers, with the most comprehensive policies covering up to 50 different conditions or more.
This payment is designed to help you cover costs of any private treatment, your mortgage or rent, additional living costs and more. If you have to take time off work due to your condition, the payment will enable you and your family to maintain a reasonable standard of living and avoid unnecessary, burdensome financial strains at a time when you need peace of mind in order to be able to fully rest and recover.
What variables will affect the cost of your cover?
Monthly premiums can vary depending on a number of factors that will determine how much you pay. The total cost of your policy will be impacted by variables such as:
- Your age
- If you currently smoke or have previously smoked
- Your overall health and family’s medical history
- If you are employed in a high risk job
- The level of cover you wish to receive
An experienced, independent adviser can help you to find a competitive policy that suits your circumstances and the level of cover that you are looking for. Our advisers here at Happy Mortgage People have a wealth of experience in helping individuals to find a policy that meets their needs.
What are the benefits of critical illness insurance?
- Your pay-out could go a long way towards helping you to maintain stability at a time when you need it most. If you’re unable to work, the money paid out from your policy could ensure you can still cover your mortgage, rent and bills.
- Critical illness cover can create a comprehensive back-up plan for you in a way that savings or benefits alone could likely not facilitate.
- Choose a comprehensive policy and you’ll be covered for a wide range of illnesses. Life can deal some difficult hands at times, but with critical illness insurance you’ll be prepared for the unforeseen.
- How you spend the pay-out is up to you.
Are there any downsides to a critical illness policy?
- Not every condition is covered by critical illness insurance. In fact, if you are considered to be at high risk of developing a particular condition due to existing health issues or your family’s medical history, then this illness may be excluded from your policy.
- If you stop paying your premiums, your cover will end 30 days after your first missed premium.
- Your policy has no cash value unless a valid claim is made. If you survive the policy, you won’t get any money back.
Here at Happy Mortgage People, we can advise you on the best insurance policy to suit your needs and circumstances. Simply get in touch today.
