What is Critical Illness Insurance and what does it cover?

What is Critical Illness Insurance and what does it cover?

Paying out a lump sum of money if you are diagnosed with certain disabilities or illnesses, Critical Illness Insurance is an insurance product that you really should consider.

A large insurance pay out could give you financial security and freedom, as well as peace of mind, should you be unable to work with no limitation on what you can spend the cash on.

Whilst you may have sick pay covered in your contract, this payment may not be enough to cover your needs and month to month expenses and we wouldn’t recommend relying solely on this income to see you through a longer-term sickness.

Typically, critical illness cover can include:

  • Heart attack
  • Stroke
  • Loss or limbs
  • Parkinson’s disease
  • Multiple Sclerosis
  • Cancer

Every policy will vary and quotation and cover will be based on your personal and family medical history.

Do I need Critical Illness Insurance?

You may find that you already have some form of illness insurance via your bank, current mortgage or combined with another insurance product you may already hold, so it is worth checking the current level of cover you may already have.

You should also find out what you are covered for with your employer – does your employer pay out any benefits should you be unable to work due to disability or ill-health?

What’s the cost?

Critical Illness Insurance premiums – the amount you pay monthly – can vary and some of the factors that have an impact include age, smoker or non-smoker and medical conditions to name just a few.  Any payments made by you will not be refunded should you not be able to afford the payments at a later date or you cancel the policy outside of the initial cooling off period

What do I need to know?

Before you agree to a Critical Illness Insurance policy you need to understand the following:

  • How much it will cost you each month?
  • Is the cover level or decreasing?
  • What is the term of the policy/what age does it cover you to?
  • How much your policy will pay out?
  • What illnesses / conditions are excluded, if any?
  • Are existing medical conditions covered?

You must also ensure that you are truthful when you are looking at cover, confirming that correct family and personal medical history details are given to the insurer. If at a later date it is discovered that not all true facts were declared from application, your policy may be cancelled and no claims paid out.

How can Best 4U help?

Our friendly and passionate insurance team have access to a number of insurers and have an excellent reputation when it comes to securing great insurance deals and quotes for our clients.

If the last year has shown us anything, it is that we never know what is around the corner – Critical Illness Insurance could help your future self.

If you would like more information or a quote, please contact the insurance team at Best 4U today on 01536 411 144 or email insurance@best4umortgages.com

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