There seems to be a lot of different insurances out there that you can choose from, all of which cover different aspects of your life. In the most part you will recognise what the insurance you have taken out will do, however, one that you might not know much about is critical illness cover.
So, what is critical illness cover and is it actually an insurance that you need to take out?
What is critical illness cover?
According to the ABI every single year around 1m workers throughout the UK find themselves unable to work, due to an illness or an injury. This means that they are unable to earn money and that they may then be unable to pay all the important bills that come in on a monthly basis.
The idea behind critical illness cover is that it will pay out a tax-free payment if you are diagnosed with one of many illnesses or perhaps end up with an injury. This one-off payment will then be useful when it comes to paying rent, your mortgage or perhaps any debts that you may have.
What illnesses or injuries does it cover?
There are a variety of reasons why critical illness cover may be paid out. Some of the examples are:
- Heart attack
- Certain types or stages of cancer
- Multiple Sclerosis
There are also some policies that will pay out for conditions that are less severe, as well as paying out when your children has one of these conditions.
It is important to keep in mind that there are also some serious illnesses that may not be covered within a critical illness policy. This includes some cancers. You may also not be covered if you already knew that you had the condition before you took out the insurance policy.
How do you know if you need critical illness cover?
Not everyone will need to take out critical illness cover. However, you may want to consider it if, you don’t have enough savings to cover your bills should you become seriously ill or even disabled. You should also consider it if you do not have a benefits package with your work, which covers if you have to have a long period of time off due to sickness.
How are the monthly payments worked out?
When you organise critical illness cover you will need to pay out a monthly premium. This monthly premium will depend on a number of different things. The insurance provider will look at your age, the amount of cover that you want to take out, whether you smoke or have smoked previously, your weight, your medical history and your families medical history, they will also look at your job too and the risk this poses to you.
Only you know whether or not you need critical illness cover. Essentially, if you do not think that you are going to be able to cover your bills and also pay out for all the others in life such as food, then taking out critical illness cover might just be a good idea for you to take out.