Critical Illness Cover
Protection for life’s ups and downs
How does Critical Illness Cover work?
Critical illness cover pays out a tax-free lump sum if you’re diagnosed with an insured medical condition. It’s not the same as life insurance, which pays money to a person or people you name if you pass away.
You can spend the money how you wish. You can use it to clear debts, pay medical bills or adapt your home to your particular needs.
When you consider the level of cover you take out on your critical illness policy, you should factor in the level of financial support
your dependants would need if you weren’t able to provide an income as a result of your illness. For example, you should think about:
- How much your household would need without your income
- How much remains on your mortgage or any other debts
- How much you can afford to pay every month for cover
Enjoy Peace of Mind Once You're Covered
What affects the price of critical illness cover?
Type of Policy
Whether you choose to take out a single or joint policy – buying a joint policy could be cheaper
Your Age
The earlier you take out critical illness cover, generally the cheaper the premium.
Your Occupation
Insurers ask about your job to help calculate how likely you are to make a claim
Your Lifestyle
Some lifestyle habits, such as smoking, will also affect what you pay for critical illness cover
FAQs
You and your partner can take out a joint critical illness cover policy. Think carefully about how you want the policy to work. With most joint policies you will only be allowed a single claim. So, for example, if you were to be diagnosed with a critical illness and then claimed on the plan the policy would end and your partner would no longer have the cover. In some cases however, you can buy joint policies that continue to cover the second person – even after a partner has claimed.
When you consider the level of cover you take out on your critical illness policy, you should factor in the level of financial support your dependants would need if you weren’t able to provide an income as a result of your illness. For example, you should think about:
- How much your household would need without your income
- How much remains on your mortgage or any other debts
- How much you can afford to pay every month for cover
Not all insurers will offer critical illness cover if you have a pre-existing condition, and you may have to pay more in premiums for the policy. If you do have a pre-existing condition you should always declare it, or your insurer might refuse any future claims you make.
Your chosen insurer will have a list of all the critical conditions covered on your policy on their website. The conditions covered can vary significantly between insurers and policies, so read the small print.
Most insurers will let you adjust the level of cover you have with your policy, as well as the duration of the policy term and any extras you might want to add or remove. However you shouldn’t automatically assume this is the case – check with your insurer to be certain.
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