Please find some frequently asked questions on Critical Illness Cover:
What is Critical Illness Insurance / Critical Insurance Cover?
Critical Illness Insurance (also known as critical illness cover) is an Insurance policy that pays out a tax free lump sum of money upon diagnosis of a specified critical illness. Unlike life insurance cover, Critical Illness Insurance pays out to yourself. It is more expensive than life cover, however you are far more likely to suffer a critical illness than to die.
Many Insurance companies also offer free children’s critical illness cover in their critical illness policies.
What is Children’s Critical Illness Cover?
Free Children’s Critical Illness Cover is now included with many Critical Illness Insurance Plans in the UK. This means that when you take out the cover, a number of your children or potential children are also covered under the policy. Each company’s definitions of child cover differs, one example of the Children’s Critical insurance cover (from Friends Provident) offers 50% of your total cover or up to £20,000 (whichever is lower) for each child, with a maximum of 3 children to be covered by the policy.
It is important to remember that any claims made on the children’s critical illness cover is not subtracted from your cover and does not mean that your cover needs to stop.
How Much Will Critical Illness Insurance Cost?
Critical Illness Insurance premiums are calculated based on a number of factors including your gender, age, smoker status, medical history, height, weight and the amount and type of insurance cover that you are looking for.
You can request a critical insurance quote from one of insurance advisers now, via our contact page.
Your Medical background will be taken into consideration prior to any quote.
Why have Critical Illness Insurance Cover?
The important thing to remember is that Critical Illness Insurance is not a lottery, i.e. ‘You are diagnosed as being ill so you are given a lump sum of money’. The insurance policy is there to provide cover against the financial hardships that can arise from you being seriously ill.
The ABI specify a number of illnesses and definitions that must be covered for a policy to be classed as a Critical Illness Policy. Some companies offer additional definitions and illnesses on top of these for example BUPA who cover around 38 illnesses and automatically include you into their Best Doctor’s Scheme and BUPA Health Line Scheme.
What is the Difference between Critical Illness Insurance and Income Protection Insurance?
Critical Illness Insurance provides a tax free lump sum of money upon diagnosis of a specified critical illness.
This lump sum amount is not related to your occupation and by default does not provide cover should you be unable to work.
One such example is that somebody may suffer from a heart attack or become blind or deaf, whilst this would more than likely have a huge impact on their life, it may not stop them from working, in this instance a Critical Illness Policy would pay out.
Income Protection Cover provides a tax free monthly benefit if you are unable to work due to an illness or disability. This is not confined to any specific illnesses and will pay out once you’ve been off work for a set amount of time.
To have the most comprehensive cover, we recommend that people look into having Life Insurance, Critical Illness Insurance and Income Protection Cover.
Are there any Exclusions for Critical Illness Policies?
All policies differ in their exclusions for Critical Illness payouts. Some common exclusions are for drug related claims, self inflicted injuries and claims arisen from war.
Some companies may exclude conditions from a policy if you have a pre-existing medical condition, for example it’s unlikely that a company would cover you for cancer if you’ve had cancer before taking out the insurance policy. We advise that you check your key features, policy documents and terms to find out more details about any exclusions and our advisers can go through that with you.
In addition to Critical Illness Insurance we also provide many other insurance covers. Please feel free to contact us for more info or to arrange a quote.