The possibility of unexpected critical illness is easy to ignore. However, it’s important to prepare for the worst and arrange cover to minimise the financial impact on you and your family if you become ill or injured.
To help, we’ve put together a guide to Critical Illness Cover that’ll give you peace of mind, ensuring that you and your family can withstand any financial implications of an unexpected diagnosis.
What is Critical Illness Cover?
Critical Illness Cover provides a tax-free, lump sum pay-out if you are diagnosed with a critical or life-threatening illness. This means that you would still be able to pay your living costs, including your mortgage and any medical costs incurred, if you become unable to work due to illness or injury.
Why do you need Critical Illness Cover?
Could you afford to maintain your current lifestyle if you were forced to stop working due to illness or injury? If not, Critical Illness Cover is essential to ensure that your living costs are paid, whatever happens.
This includes keeping up with your mortgage repayments, taking care of your partner and children and paying for any equipment, medicine and care needed for your medical condition.
You may think that you’re unlikely to need Critical Illness Cover, but remember:
- 1 in 2 people in the UK will be diagnosed with cancer in their lifetime
- Over 100,000 people have strokes in the UK each year – that’s one every five minutes
- 170,000 people in the UK die from heart and circulatory diseases each year – that’s 28 per cent of annual deaths
What illnesses are covered?
Different policies cover different types and severities of illness. Ensure you know exactly what your policy will pay out for, and whether or not it is based on the intensity of the diagnosis.
What’s the difference between Life Cover and CI Cover?
Life Cover or Life Insurance offers either a lump sum or monthly income to your beneficiaries should you die within the terms of the policy.
However, many people that experience serious illness do not die, which can leave individuals and their families unable to afford everyday living costs. Critical Illness Cover provides financial support in the case of severe illness or injury, and some policies also offer practical and emotional support to help you navigate life after becoming unwell.
At least 50 per cent of people are more likely to claim on a Critical Illness Policy than a term life policy. Critical Illness Cover can be taken out alongside term-based Life Insurance in a combined policy.
Help with your protection
At Choice Mortgage Solutions, we can provide you with expert advice to help you plan for worst-case scenarios. Our experts will advise you on how to make your money work for you, preparing you for the future and guiding you through important financial decisions.
To get in touch, give us a call on 0800 612 8099.