Critical Illness Cover

What is critical illness cover?

Critical illness cover is a type of insurance which pays out a tax-free lump sum if you are diagnosed with one of the listed conditions. 

Critical illness cover gives you the peace of mind that you and your family will be financially secure should you be faced with a life-changing medical diagnosis.

The most common types of claims on this type of policy are for cancer, heart attacks, strokes, but also generally cover other conditions such as multiple sclerosis. 

Whatever your situation, our team of advisors can help you to choose the right combination of life insurance, critical illness and income protection cover. Contact us now to get started. 

Can you apply for critical illness cover after a diagnosis?

Yes, you can apply for critical illness cover once you have received a diagnosis.

However, you may find that this specific condition or illness is excluded from your protection, and you will pay increased premiums to account for the additional risk.

You must be honest about your medical history when making your application. Otherwise, you may find that any future claims are rejected due to 'misrepresentation'.

Do I need critical illness cover?

If the worst were to happen, you would be grateful for the financial security that is offered by critical illness cover.

It is particularly significant if you have children or other dependents that rely on you financially. Knowing that they will be able to support themselves can give great peace of mind.  

There are a number of life events that may trigger someone to consider critical illness cover.  People commonly look into critical illness cover, life insurance and income protection insurance if they have taken out a mortgage, entered into a marriage or civil partnership, or had a child. 

There are a few questions you can ask yourself when considering critical illness cover:

1. How would a serious diagnosis affect you financially?
2. What financial commitments do you have that you may struggle to pay?
3. Could your partner support you financially?
4. Do you have illness protection entitlement from your employer?

That being said, the younger and healthier you are when signing up to the policy, the cheaper the premiums will be.

What illnesses are covered?

Each policy will have a specific list of illnesses, but they generally cover between 40-60 severe illnesses and 30-50 less severe illnesses.

Some policies may also cover child-specific illnesses.

The majority of policies will cover:

• Cancer
• Heart attacks and strokes
• Organ failure
• Loss of limbs, hearing or sight
• Multiple sclerosis
• Alzheimer's and Parkinson's disease

What types of critical illness cover are there?

There are two main types of critical illness cover, and you can buy either level, increasing or decreasing cover for each. 

Standalone cover - protects you only for illnesses listed in your policy. 
Combined cover - covers both life and critical illness cover into one policy. This type of cover can also be known as accelerated or integrated critical illness cover. Be aware that you can only claim the main benefit once. 
 

What is excluded from critical illness cover?

It is crucial to understand what is excluded as well as included in your policy. 

• Illnesses not listed in your policy or not meeting the definition of the policy will not be eligible for a claim. 
• If you have a standalone policy, you are also unlikely to be covered for a terminal diagnosis or death - this is typically covered by life insurance or a combined policy. 

Will critical illness insurance cover my children?

There are plenty of critical illness policies that cover your children.

Typically these policies will cover the adult conditions with some exclusions, and may also cover conditions specific to children such as Down's syndrome.

Should your children be diagnosed with one of the listed conditions, you can claim a percentage of the overall benefit amount. Depending on your policy, this can range from 25% to 50% of the total benefit or £25,000, whichever is lower.

If you too were diagnosed with an eligible illness or condition, you would be entitled to claim for the full policy benefit. 

What is a 'terminal illness benefit' in life insurance policies?

Some life insurance policies have a 'terminal illness benefit' included, which simply means that upon a terminal diagnosis - typically less than 12 months - you receive your life insurance lump sum. This is different from critical illness cover, which pays out upon diagnosis of a listed condition.

How can I learn more?

Our team of experienced advisors have helped many people to get the best critical illness policy for their needs, get in touch today to get started.