Critical Illness Cover: Explained!
We tend to think we’ll be healthy forever. Unfortunately, statistics suggest the odds are against us, as 1 in 5 men and 1 in 6 women will suffer a serious medical disease at some point in their life. It is for this reason that Life Insurance providers sell something called Critical Illness Cover.
What is Critical Illness Cover?
Critical Illness Cover provides you with financial peace of mind whilst focusing on getting back to full health.
It’s important not to confuse critical illness with terminal illness, as terminal illness cover only pays out when the policyholder life expectancy is less than 12 months. Critical Illness Cover can pay off when you’re diagnosed with an illness like breast or testicular cancer, now curable in many cases thanks to the advances in medical science.
How does Critical Illness cover work?
This type of cover pays off, either a lump sum of money or a monthly income, when you’re diagnosed by a doctor with a critical illness covered by the policy; each life insurance provider have different definitions of what they include as critical illness.
How much does it cost?
5 key aspects alter the price of Critical Illness Cover:
- Your Age.
- Your Health Condition.
- If you are a smoker/non smoker.
- Your Job.
- The amount of money you wish to be covered for.
Do they pay off?
90% of Critical Illness claims are accepted, including total and permanent disability claims (The ABI, 2011).
So, what are the main reasons why providers deny 10% of the claims?
- Fraudulent claiming.
- If you claim for an uncovered condition.
- If you fail to provide the required medical prove.
- If you fail to reveal important information when you buy the policy.
Where can I buy Critical Illness Cover?
Critical Illness Cover is sold by Life Insurance providers. FCA registered life Insurance brokers will give you free advice and help you buy the best cover at the best price.
