What is Critical Illness Insurance?
Critical illness cover is a type of life insurance policy that offers protection in the event of a being diagnosed with a serious illness or suffering an injury. If you unfortunately suffer from a specific illness or injury, a pay-out is made by the insurer as a lump-sum, which can be tax-free.
A critical illness can include heart attacks, strokes and non-terminal cancer. Critical illness insurance can also cover you if you’ve suffered a physical disability following an injury, such as after an accident at work.
Critical Illness plans are often combined with a Life Insurance plan, click below to find out more…
Benefits of Critical Illness Insurance
Provides protection for you and your dependents
Choose how you use the pay-out – it can support you and your family with daily living costs, if you are unable to work.
Replace an income if you’re too unwell to work
It can help you cope with the financial commitments, such as the mortgage and day-to-day bills, if you’re too unwell to work.
Pays out on diagnosis – tax-free
You will receive a tax-free, cash lump sum if you are diagnosed with a condition covered by your policy, such as cancer, heart attack, stroke and many more.
Combine policy with a life insurance plan*
Combine with a life insurance plan and pay just one monthly premium, that is generally much cheaper than a standalone policy.
* This combined plan will only pay out on the first event (a critical illness diagnosis or you pass away).
Cover for children
Add cover for children to help you cope and concentrate on the most important thing – being there for your little one?
Fixed or reviewable premiums
Choose a guaranteed premium for the life of the policy or choose a reviewable premium, which may often be cheaper at the start of the plan (but rises over the course of the term).
Free Critical Illness Insurance Quote
Get the right advice, on the right product that suits you and your circumstances.
Let’s get started on your Critical Illness quote.
Do I need critical illness cover?
If you don’t have savings, critical illness cover can provide valuable financial support in the event that you become seriously ill.
Don’t assume that if you don’t have dependants you don’t need cover. If you live on your own, for example, you will need to ensure any rent or mortgage commitments are paid each month. You don’t want to have to worry about keeping up with your financial commitments when you are unwell, recovering from injury or adapting to incapacity.
Your lump sum pay-out could be used to cover some of the following costs:
How would you cope?
No one knows what’s going to happen in the future. But wouldn’t it be nice to know that you’re covered either way?
Steve P – Operations Director
Steve is a busy Operations Director and was fit and well with no health concerns. We set up a joint critical illness plan for himself and his wife as they wanted a lump sum to be paid should one of them be diagnosed with a serious illness. Shortly after the plan was up and running, Steve suffered a seizure at work and was later diagnosed with Multiple Sclerosis. This had a devastating effect on his physical and mental health, which in turn affected his work. Steve’s Critical Illness plan paid out a lump sum which he decided to put towards paying off a sizeable amount from his mortgage.
Evelyn H – Care Assistant
Evelyn has three young children and she was very concerned that because she had been diagnosed with cervical cancer 4 years earlier, that she wouldn’t be able to get the financial protection she needed in place. We took the time to fully understand her circumstances and medical history and researched what impact her previous cancer diagnosis would have on a new application. After confirming a few details with Evelyn, the insurer was able to offer life with critical illness cover with no increase in premium or exclusions – a fantastic result
Melissa O – Goods Buyer
Melissa is a single mum who contacted us for advice on what cover she needed to make sure her children would be financially secure if anything was to happen to her. Melissa was in good health and we were quickly able to offer her a life insurance plan to cover her outstanding mortgage balance and also add critical illness protection. Melissa was delighted, as we upgraded the plan to include her children, so that they would also be covered should they be diagnosed with a serious illness.
What are the most common critical illness conditions?
(Source: Cover Magazine 11 May 2018)
Frequently asked questions
Critical illness cover pays out a lump sum if you are diagnosed with a condition that is described in your policy.
The three most common conditions that claims are for:
- Heart Attack
Many policies will cover you for between 40 and 120 conditions depending on the insurer. Other common conditions that are claimed for are – Multiple Sclerosis, loss of vision or hearing, loss of limbs, HIV Infection, Motor Neurone Disease.
No one knows if or when they will be affected by a serious or critical illness and being unable to return to work or the stress caused for you and your family by having to take time off from work to recover. This can put extra pressure on you as you worry about meeting financial commitments such as your mortgage or paying the bills.
Critical Illness cover can be a valuable support if you are unfortunately diagnosed with a serious illness and are unable to work. The cover pays out a lump sum that you choose how you wish to use it. You can use to repay a mortgage, pay your day-to-day bills or help with your recovery and treatment.
- You are diagnosed with a critical illness
- You make a claim directly with the insurer, you may need to supply medical evidence of your diagnoses
- The insurer will then pay-out the claim, once this is complete the policy terminates
- You use the pay-out how you wish
The cost of the monthly premiums is determined by several factors, including how long the cover lasts, your age at the time the policy starts, your health, your lifestyle and your family medical history.
An insurer will assess your risk of suffering a critical illness and will typically look at these main areas:
- Age – You are at a higher risk of suffering a serious illness the older you are
- Medical history – insurers will want to know about your previous medical history to know if you have suffered from illness in the past.
- Family – Insurers will also want to know about your family’s medical history, including serious illness and ages your family suffered from these conditions.
- Your current health – some factors that will considered when determining the monthly premiums are – what is your height and weight, do you currently or have you been a smoker, how much alcohol you regularly drink, any drug use.
Children’s Critical Illness cover is offered by a number of insurers as an addition to your critical illness plan. Some insurers will even offer this cover included at no extra cost.
Many plans will cover natural, legally adopted and stepchildren, as well as any children that you may have in the future.
Typical the child must be aged between 30 days and 18 years old, or 21 if in full time education.
When a child is diagnosed with a critical illness or has an accident, the parents often have to take time off work, or even leave work, to focus on looking after them. Typically this involves daily hospital visits, child care for any other children in the family, or making adaptions to the home or family car, all of this can have a huge emotional and financial impact. Children’s critical illness cover can help reduce any extra stress by supporting with these additional costs.