Critical Illness Insurance

What you Need to Know

Critical Illness Insurance (also known as Critical Illness Cover), is more than just an insurance policy. It stops you worrying about what will happen to you and your dependents if you’re diagnosed with a long-term illness that prevents you from working and leading a normal life.

Critical Illness Insurance protects you financially by giving you a tax-free lump sum payment if you are diagnosed with one of the critical illnesses listed in your policy, such as cancer, heart attack or stroke, or you become disabled following an accident.

You can use this money however you want to. You may be entitled to sick pay or state benefit which covers your household expenses, so you could use the lump sum to clear your mortgage or another debt, or use it to modify your home if you become disabled.

Provided the conditions are covered, this type of policy offers you financial support at a time when you need it the most.

Do I Need Critical Illness Insurance?

If you are the main breadwinner in your home or both you and your partner work and have children living at home, then having critical illness cover means if you or your partner are diagnosed with a critical long-term illness, both of you will need to take long periods off work to undergo treatment or provide care.

You may be single and live on your own, however if you fall critically ill, you will still need to cover your monthly expenses, and may have additional costs, such as paying for transport or for carers to look after you.

We can help you decide which type of critical illness insurance and amount of cover would be best for you based on your individual circumstances.

Which illnesses will I be covered for?

Most reputable insurers will cover the basic three critical illnesses, cancer, heart attack and stroke. They will also cover some 20 or more illnesses, conditions or injuries that are considered life-changing such as:

• Alzheimer’s
• Aorta graft surgery
• Benign brain tumour
• Blindness
• Coma
• Coronary artery by-pass surgery
• Deafness
• Heart valve replacement or repair
• Kidney Failure
• Loss of hand or foot
• Loss of speech
• Major Organ Transplant
• Motor Neurone Disease
• Multiple Sclerosis
• Paralysis of Limbs
• Parkinson’s Disease
• Third Degree Burns
• Traumatic Brain Injury
• Total Permanent Disability

How much does Critical Illness Insurance Cost?

Critical Illness Insurance companies include a number of risk factors to determine how much they will cover you for and how much your policy will cost. This is determined by your medical history, existing medical conditions and other factors such as your age, gender and lifestyle choices.

The younger you are when you take out a policy, the less you will pay. The older you are, the more likely you are to make a claim. If you perform dangerous tasks in your job it may limit the number of providers who are prepared to insure you or will charge you more. If you have a hobby like skydiving, or smoke and drink heavily, your premiums will be higher or you may be excluded by some life companies.

What to Think About Before Buying a Policy

Before you start searching for Critical Illness cover, do some homework.
Find out what benefits your employer covers you for if you can’t work because of ill-health or disability. Find out how much you and your family will need to live on each month so you know how much cover you will need.

Get some advice. As a protection specialist, we look at Critical Illness policies from a carefully selected panel to help you to choose one that best suits you and your circumstances.

Is Covid-19 covered by Critical Illness Insurance?

Critical illness Insurance is intended to cover people if they are diagnosed with a long-term illness, such as cancer, heart attack or stroke. Coronavirus is a short-term illness, and should be covered by statutory sick pay if you are employed. However it’s important to check how insurance providers take Covid-19 into consideration before choosing a new policy.