A critical illness insurance policy provides a lump sum payment if you are diagnosed with a health issue that is defined in the policy. Some policies will also pay out if you are seriously injured.
Why do you need critical illness cover?
If you have a serious illness and are not able to work you will be entitled to government benefits, The level of income you will receive from benefits is low and means that you will need to adjust your lifestyle. You may also be faced with costly medical expenses.
If you do not have enough savings to make up for the loss of income or your employer does not have generous sickness benefits, then it makes sense to protect you and your family with critical illness cover.
What’s the cost?
The cost of a critical illness policy varies according to your age and the current health. Older people and those with existing health conditions will pay more. You will also pay more if you are a smoker.
An insurer will need to know your occupation as some occupations carry greater health risks.
The level of cover, how much you will receive if making a claim, also affects the cost,
What is covered
A critical illness policy will specify the type of critical illnesses that are covered. This will include such things as cancer, heart attacks, dementia, Parkinson’s disease and strokes, but policies vary.
If the policy covers injury then the types of injury will be specified. This will include the loss of a limb and conditions such as blindness and deafness.
If you are a diagnosed with a serious illness which is easily treatable then you may not be entitled to claim on a critical illness policy. For example, some forms of cancers are curable and may not be classed as critical illnesses. A minor heart attack from which there is a quick recovery is not a critical illness.
What are the alternatives
There are alternate insurance policies that you can consider. Income protection insurance provides you with regular payments based on a percentage of your income whilst you are off work through sickness or as a result of an accident.
Mortgage protection insurance takes care of the mortgage payments if you are ill.
As well as critical illness insurance it is also advisable to take out life insurance. This gives you the peace of mind in knowing that if a critical illness results in death, then your loved ones will not face a financial burden.
How to find the best policy
An insurance broker is the best place to go to for help and advice in buying the best critical illness insurance policy. A broker has access to a wide range of policies and can find the best policy to suite your individual circumstances. A broker can arrange insurance at a competitive price.
Ascot Mortgages are experts at matching their client’s needs to the best critical illness policy. Talk to Ascot Mortgages today to discuss how critical illness insurance can protect you and your family.