Critical Illness Insurance

Critical illness refers to a severe health condition that typically threatens a person’s life and requires immediate medical intervention. These illnesses often result in significant impairment of one or more vital organs or bodily systems. Critical illnesses can include conditions such as heart attack, stroke, major organ failure,  cancer, and severe burns, to mention a few. They often require intensive medical treatment and may have long-term consequences for the individual’s health and well-being.

Critical illness insurance provides coverage if you were to be diagnosed with one of the specific medical conditions or injuries listed in the policy conditions. It is typically a one-off lump sum payment but can be paid out on different forms and the policy ends after the claim has been settled.

The coverage for conditions and illnesses can vary significantly between different insurers. Some policies are comprehensive and cover 80 or more different conditions, while others have more limited coverage.

Consulting with insurance professionals and assessing your circumstances can help you make an informed decision about whether Critical Illness Insurance suits you. A few things to think about when considering critical illness insurance include:

• If you were to suffer a serious illness, could you survive financially?
• Would you be able to pay your mortgage/rent whilst unwell and recovering from treatment or even worse still suffering a terminal illness?
• Would your loved one have to continue to work to support the household?
• What would a lump sum payout mean to you in the event of being given devastating news, but due to you protecting yourself with this cover means you have no money worries and can focus on you and your treatment?
• Have you had a family member suffering from a critical illness and how did it impact you and your family?

When applying for critical illness insurance, several things will impact the premium (monthly payment), such as:

• Your age
• Medical history of you and direct family
• Whether you are – or have been – a smoker
• Current job – some industries and trades are more dangerous than others
• The level of cover that you are looking for

If you are considered at risk of a serious condition upon submission of your information, that illness or condition could be excluded from the policy, or you might have to pay a higher premium to be covered for it.

Determining the appropriate amount of Critical Illness Insurance depends on several factors, including your financial obligations, such as your mortgage debt or monthly rental payments, lifestyle, and healthcare needs. Consider factors such as outstanding debts, monthly expenses, potential loss of income during illness, and any additional costs associated with treatment and recovery. Assessing these factors comprehensively with the help of a financial advisor or insurance expert can help you determine the optimal coverage amount to provide financial security in the event of a critical illness.