why do I need Critical Illness cover?
We all probably understand the risk of 'dying too 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
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?
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.
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
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
Please click on the following link for our 'Guide to Critical Illness Cover'
How do I find
Call us now on 0116 2592371 and we can arrange
to visit you and conduct a thorough analysis of your Critical Illness