Critical Illness Insurance

Critical illness insurance is a type of  insurance that could help protect your future and your loved ones in case you’re diagnosed with a critical illness. The payout is tax-free and can cover your expenses while you take time to recover.

 

How does a critical illness insurance work?

For the duration of your plan, you pay monthly premiums (for a usual period of 5 to 40 years). If you’re diagnosed with one of the conditions covered by your policy, you’ll receive a payout. You can spend the money: you can use it to pay for critical medical services or to pay off your mortgage or on whatever you want.

 

Do I really need it?

You and your family rely on your income?  If the answer is yes, then you most probably need a critical illness insurance. What would happen if you would be diagnosed with a serious illness and wouldn’t be able to work? Maybe you would need a lot of money for medical expenses. Do you have people in your life who depend on you financially? Maybe your partner or children? In the event you pass away or will be unable to work, a payout from your insurer could help to support you and your family in a life-changing situation while you focus on getting back on your feet.

 

How much critical illness cover do you need?

The amount of critical illness insurance you will need depends on many variables. Consider things like, how much money you and your family need on an everyday basis. Also, do you have a mortgage, any ongoing debts. And last, if you have any savings, that would help you out in a tough situation.

 

Who is eligible?

To take out a critical illness insurance you must be a UK resident.

• Premiums start at £5 a month
• Usually available entry age between 16 and 69
• Minimum term 5 years
• Maximum term 40 years

*depends on the provider

What illnesses are covered?

Critical illness coverage varies depending on a provider so it’s important to check the details of a policy before you buy one.  Major illnesses that are usually covered include:

 

• heart attack
• stroke
• cancer
• Alzheimer’s disease
• major organ transplant
• permanent disability caused by illness or injury
• liver disease
• dementia
• coronary artery by-pass surgery
• kidney failure