Critical Illness Cover
This type of insurance protects you against the financial impact of a critical illness, such as cancer. Insurers will specify a range of illnesses that are covered and payout will usually be in the form of a lump sum. Critical illness cover can also be added to life insurance.
What is it?
Critical Illness Cover is designed to reduce the stress on you and your loved ones should you become critically ill. Being diagnosed with a critical illness could mean significant changes to your lifestyle and the money could go towards things such as treatment costs and adaptions to the home.
You will pay a monthly premium and it will pay out a tax free lump sum on diagnosis of one of the critical illnesses named in the policy conditions. The amount paid out from the policy will be determined by you at the start of the policy.
What options are available?
There are two main options available when considering taking out Critical Illness Cover. It can be taken as a standalone product or in conjunction with a life insurance product which will pay out on the earlier event of death or diagnosis of a critical illness.
Examples of critical illnesses covered can include cancer, stroke, heart attacks or loss of a limb.