What is Critical Illness Cover?
Put simply, Critical illness cover pays out a lump sum if you're diagnosed with one of the 'critical illnesses' that policy covers. Most will typically cover life-threatening conditions such as a heart attack, stroke and cancer.
Most Critical illness polices are taken out with a life insurance policy but you can also get a standalone policy.
Do I need Critical illness cover?
Being diagnosed with a critical illness can really impact you more than just your physical health it can also impact your mental health and finances. The ability to be unable to work can really affect you and your loves ones.
What conditions are (and aren't) covered?
Many believe a critical illness policy will pay out if you get ANY serious illness and can't work, but this isn't true. The definition of 'critical illness' can be a minefield and varies between insurers. Some illnesses might not be covered at all and, even if your policy does include, say, certain cancers, it may only be specific stages that are covered. It’s important to read the T&Cs carefully before taking out any policy.
What is the right amount of critical illness cover?
Simply put, a small amount of critical illness cover is better than no cover. The level of cover required will largely be determined by your personal circumstances, as well as a monthly payment you can realistically budget for.
A good starting point is to calculate any current monthly outgoings that you'd need to cover, then add a buffer for any additional costs that might crop up relating to a critical illness – for example, travel to and from a treatment centre, medication costs or higher utility bills to run medical equipment
How much does Critical illness cover cost?
The cost of critical illness cover with depend on many different factors: