What Is Critical Illness Insurance?

What is Critical Illness Cover?

Critical Illness Cover is an insurance policy that almost any individual between the ages of 17 and 70 can take out to protect against the financial impact of being diagnosed with a recognised serious illness. 

The benefit is paid out in one tax free lump sum when the illness is diagnosed. It is intended to cover both the cost of any outstanding debts as well as the ongoing expenses that can be incurred if you are critically ill.

Who Can Take Advantage of Critical Illness Protection

Almost anyone can take out a critical illness cover policy, even if they have been diagnosed with a serious illness in the past.

There may be some exclusions in any policy relating to previous medical history, but even if certain conditions are excluded it is still possible to gain cover for other eventualities.

As an individual does become more susceptible to illness through the progression of age, premiums do tend to increase for elder applicants however policies can be created for almost any individual that wishes to be covered.

How to Take Out Critical Illness Protection

As with almost any insurance policy, a critical illness contract can be taken up over the internet, with an independent insurance broker such as www.critical-illness-cover.org or directly with the company.

Once the initial application has been made, the issuing company will require a full medical history of the applicant as well as supporting personal data before the policy can be confirmed.

How to Calculate the Level of Cover Required

The main priority of Critical Illness cover is to ensure that the individual and any dependents do not have any financial worries during the period of the illness.

The level of cover should therefore incorporate any outstanding debts, including the mortgage and other long term financial commitments, but should also include a sum that will cover future expenses such as necessary alterations to the home or long term care facilities that may be required.

Many people taking out critical illness cover also include an element for monthly income during the period of incapacitation but this does depend on the affordability of the policy as a whole.

When Does the Cover Start 

Most policies of this nature require a certain period before you can make a claim. This can be between one and six months depending on the policy and details of this should be clearly identified before any contract is taken out.

When Does a Critical Illness Policy Expire

This type of insurance policy continues to run for as long as the premiums are paid. Though such insurance will only usually pay out once for each illness diagnosed, it is possible for multiple claims to be made if further illnesses are discovered.

Why is Critical Illness Cover Becoming so Important

Thanks to the advancements in medical technology, more people are surviving life threatening diseases than ever before.

Though this is good news for the health of the individual it does mean that more people are living with very serious illnesses that stop them working or achieving the level of income they are used to.

As these rates increase, the demand for Critical illness to cover such eventualities is also on growing so that those who are concerned about how they would be able to afford to continue should the worst happen can make the necessary arrangements.