Why Critical Illness cover?

First of all, unlike Life Insurance, Critical Illness policies do not pay out for a fatal accident or death of any kind. So, Critical Illness Insurance won’t provide security for your loved ones when you are gone but, it is still essential for providing long term financial security. A critical illness insurance policy could provide valuable financial support when you are unable to work, as long as the illness in question is covered.

Core Conditions Critical Illness Insurance will Cover…

The Association of British Insurers stipulates that all Critical Illness policies must provide a basic level of cover for seven stated ‘Core Conditions’.

Core Conditions are currently defined as:
- Cancer
- Heart Attack
- Coronary Artery Bypass
- Kidney Failure
- Major Organ Transplant
- Multiple Sclerosis
- Stroke

Critical Illness cover normally pays out on the diagnosis of a specified illness, whether or not you are able to work. However, when it comes to cancer, diagnosis alone does not always enable you to make a full claim. In some situations the illness must be considered advanced before it will pay out.

However, there are alternative options whereby you are able to make a reduced claim for less severe symptoms. Just like if you dent the bumper of your car, your insurance will not pay out the full value of the vehicle, but issue a proportional payment equivalent to the damage that has actually been done.

All of this will be clearly explained in the insurer’s Key Features Document, which will be given to you before you purchase the cover, so you should take time to carefully read this.

Critical Illness Insurance Additional Illnesses

Depending on the type of policy you get, further conditions will also be covered under your policy. It isn’t unusual for up to 40 varying illnesses to be covered under critical illness protection. However, the type of conditions covered will vary from policy to policy,

so ensure that the insurance you select covers illnesses that are appropriate to you. In the same way that you don’t want to take up cover that doesn’t include the right illnesses, you also want to make sure you are not paying for protection against conditions that are not relevant to your lifestyle.

Critical Illness Insurance Exclusions

In addition to the extra protection you see included in the insurance cover, you will also find that certain policies will exclude named conditions.

This could include illnesses that you have suffered from in the past or may also incorporate hereditary conditions which exist within your extended family. Make sure you check the Illustration and Key Features Document before taking up any policy and, if you would like pre-existing conditions included in your policy, then stipulate this to the broker when applying for critical illness protection. This may or may not be possible (depending on the insurer) and may add to the premium.

This type of policy provides a fantastic opportunity to create financial stability for yourself and your family should you become very ill, and you are five times more likely to claim for contracting a critical illness than you are for death. It can provide the money you need to repay outstanding debts or adapt your home and lifestyle to your new way of life. It can even be used as income, to compensate for the loss or reduction of salary caused by the illness.

However you choose to use the payout from critical illness insurance, such a policy can provide vital comfort and security to help you recuperate fuller and quicker. Remember, it is rarely the first heart attack that kills you, it is the second one, caused by returning to work too soon because you have to pay the mortgage! Just make sure you have the protection you need so that your insurance can help you when you need it most.