How important is critical illness insurance?

How important is critical illness insurance is a good question to ask yourself if you are planning ahead for yourself and your family.

When a critical illness arises, thought of financial security surface very soon afterwards. Consider how would you and your family cope if you or your partner suffered from a critical condition and was unable to work. How will the mortgage and all the other outgoings get paid?

How does Critical illness work?

Once you are signed up and paid your premiums for critical illness cover you can benefit if you suffer from a critical illness.

Once you get a diagnosis of your condition by a doctor or consultant, you should immediately inform your insurer. Your insurer will let you know if the condition is covered soon afterwards. The insurer will probably need access to your medical records. They can  then assess what the condition is and its severity.

The Citizens advice Bureau summarises the position well (see quote below)

“Critical illness insurance provides you with a lump sum of money if you are diagnosed with certain illnesses or disabilities” ( Source Citizens Advice)

“The kinds of illnesses that are covered are usually long-term and very serious conditions such as a heart attack or stroke, loss of arms or legs, or diseases like cancer, multiple sclerosis or Parkinson’s disease” ( Source Citizens Advice)

Are some conditions not covered by critical illness insurance?

It is crucial that you establish the level of cover you are taking out. The cover offered by insurers will vary so make sure you read and understand the limits of your cover. Consider taking external advice at an early stage so you get the cover you need.

How much critical illness insurance cover do you need?

The level of critical illness cover you need will depend on you and your circumstances. The best exercises is to look at your family cash flow.  Work out how much is needed if they lost your income.

It is also a good idea to look at the joint position and see how it looks if your partner is the person that was critically ill. It is not a pleasant task to consider these matters, but it will give you a realistic view of the level of cover needed.

How much will critical illness cover cost?

The cost will depend on a range of factors. A few of the main ones are:

• Your age- The younger you are, the lower the premiums
• Your sex- Men pay more than women because of the overall claim history
• Your health -you may have to have a medical assessment
• Your Lifestyle- If you do dangerous sports or say smoke, then your premiums will rise
• Your job- A risky job will mean higher premiums

(Source: Citizens Advice)

Critical illness is complex so take external advice

We have looked to see how important is critical illness insurance and shown that it can be very important in the right circumstances.

It can be a complex matter so if you want to make the best choice for you, then it is a good idea to take external advice. At My Life Insurance online, we know the market and are always free to help.

Another article you might like to read (click the link below)

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