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Critical Illness Cover                                   

So why do I need Critical Illness cover?
We all probably understand the risk of 'dying t
oo soon' and the danger of leaving dependents in a precarious financial situation. However the chances of suffering a serious or critical illness (and then surviving) are twice as likely as dying. So there is a very real need to ensure that both ourselves and our dependents would be financially protected if we were to suffer from a serious or critical illness.

Did you know?

  • 1 in 3 people develop cancer at sometime in their life.
  • 1 in 4 males and 1 in 5 females will suffer a serious illness before retirement.
  • Around 120,000 people have Parkinson's Disease and 1 in 7 are under 40 when diagnosed.
  • Coronary Heart Disease is responsible for 12% of all working days lost through sickness.
  • Each year, 120,000 people suffer strokes in the UK.
    Source: Financial Services Education for Consumers Limited 1999/03

Due to advances in medical science, many people who suffer major life threatening illnesses such as a heart attack or stroke actually survive. However, many such individuals may not be able to continue working and costly ongoing specialist treatment may be required.

What does Critical Illness cover provide?
Critical illness cover provides a very valuable protection, as payment is made in the event of the diagnosis of an insured illness. Payment is usually in the form of a lump sum. Consequently, such cover would be useful in providing cash for medical help and other expenses relating to what could be a debilitating and even terminal illness.

What amount of cover do I need?
One of the main requirements for this type of cover is in relation to mortgages, where if you are unable to work following a serious illness, the sum assured would provide the necessary funds to repay the mortgage and thus remove this financial burden. This is usually a key requirement as in the vast majority of cases, suffering a serious or critical illness usually results in a loss of income (either temporary or permanently). It is also a good idea to make sure you have enough protection to cover any other debts and liabilities as well as an amount to provide for special care requirements or house modifications etc.

Unlike life assurance, however, critical illness cover may also be suitable for single people with no dependants. A need for such cover can also be seen in the context of business protection for shareholders and key persons.

Critical illness polices can either be taken out as separate 'stand alone' polices or can be added to a life assurance policy depending on your requirements. There are a number of life offices who now offer these products on a 'stand alone' basis using a term assurance contract. The feature is sometimes available as an 'add on' benefit to policies designed for mortgage repayment purposes.

What types of illnesses are covered?
The range of diseases covered normally includes the Association of British Insurers model definitions such as heart attacks, strokes, kidney failure, cancer, major organ transplants, benign brain tumours, blindness, deafness, heart valve replacement or repair, loss of limbs, loss of speech, motor neurone disease, multiple sclerosis & paralysis. Cover has been extended by some life assurance companies to encompass a range of impairments including alzheimer's disease, bacterial meningitis creutzfeldt-jakob disease and total permanent disability.

If money is paid out on diagnosis of a listed disease, it is not repayable should the condition clear.

Please click on the following link for our 'Guide to Critical Illness Cover'

How do I find out more?
Call us now on 0116 2592371 and we can arrange to visit you and conduct a thorough analysis of your Critical Illness cover requirements.

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