What is critical illness cover? Is critical illness cover worth it? And what should you look for when you compare the best critical illness insurance quotes? We explain.
Critical illness cover is designed to give you the peace of mind that you'll get a lump sum payment in the event you suffer a serious illness.
While many people have life cover to ensure their dependents receive a lump sum in the event of their death, fewer people have a policy that will support them financially if they are gravely ill.
What is critical illness cover?
Critical illness cover pays a tax-free lump sum on the diagnosis of one of a range of specified critical illnesses.
Over the years the number of conditions covered under such a policy has increased although seven core conditions should be covered. These are heart attack, cancer, stroke, major organ transplant, multiple sclerosis, kidney failure and a coronary artery bypass.
Critical illness policies will also generally pay out in the event of total or permanent disability and for other conditions such as the loss of a limb.
Is critical illness cover worth it?
If you were unable to work for an extended period due to being diagnosed with a serious illness would you be able to maintain your monthly commitments? Could you afford to pay for the best private medical care if you were diagnosed with a critical illness?
If the answer to these questions is ‘no’, then critical illness cover could be ideal for you.
An illness typically covered by such a policy affects one in four women and one in five men before retirement age. Taking out critical illness cover gives you the peace of mind that you’ll benefit from a tax-free lump sum if you were to be diagnosed with a condition covered under the policy. This will help to ensure that you can focus on recovery without any unnecessary financial strain.
What to look for when you undertake a critical illness cover comparison
When striving to offer the best critical illness cover UK providers compete in a number of ways. So, when you undertake a critical illness cover comparison, make sure you consider:
- The number and range of illnesses covered under the policy
- Whether guaranteed premiums are offered
- Whether children’s cover is included
The range of conditions covered under a policy can vary significantly. Bear in mind that a cheap critical illness cover quote may only cover a limited range of conditions.
It’s also important to establish whether the insurer offers fixed or reviewable premiums. Guaranteed premiums may be higher at first but could save you money in the long term while reviewable premiums may see the cost of your cover rise significantly in the future.
If you have children, when comparing the best critical illness insurance quotes it can also be useful to check whether children’s critical illness cover is included. More and more insurers are including this cover with their policies and it means you can make a claim if your child becomes critically ill or seriously disabled.
You should also find out what an insurer's policy is on cover for conditions that have affected close relatives as these will often be excluded.
Look for the policy that gives you the best cover with the broadest range of conditions covered for the cheapest price.
