FAQ's for Critical Illness Cover

Critical Illness Insurance?

Critical Illness insurance is the same as other insurances, in that it covers for what it says, thus, critical illness. It results in payment of a tax free lump sum of cash whenever you are diagnosed with a listed illness. Critical illness cover can be more pricy in comparison to life insurance policies, however, there is more likely a chance of you catching an illness in the nearer future that there is of you dying.

Look to combine your policies, this often results in significant discounts.

Children's Cover?

Critical illness insurance for kids is being given out free now by a lot of companies in the United Kingdom. So when it comes for you to take out a policy, your current or potential future children are automatically covered on the policy by default (with terms and conditions of course). The type of cover provided for your children will vary from company to company, so if this aspect matters to you, do some further research into this and discover your options.

Note: A claim made for your child does not stop or affect your cover.

How Much Critical Cover is Required?

The amount you want or need completely depends on you. You could talk it over with a financial advisor from your bank for any suggestions. Most people get this kind of cover to protect the mortgage, so the result is a temporary contract over so many years for the value of the mortgage.

It is highly recommended that if you think it is too expensive, then have a re-think about how much you can afford and get some kind of cover in place to at least aid on possible future illnesses. Sometimes people insure x2 their annual salary which will help them with the mortgage and other costs for a while.

How Much?

Critical Illness premiums / costs are determined by varying aspects such as height, sex, weight, age, medical history, smoking and the amount of cover that you desire.

What Conditions are covered?

Now when it comes to this kind of policy, just don't see the £ & $ signs, but a financial back up for if you become ill.

The Association of British Insurers state illnesses that are covered by default (have to be) for an insurance package to be considered as a "Critical Policy". Nevertheless, different companies offer extra illnesses such as BUPA who have nearly 40 illnesses.

Exclusions in Critical Policies?

The exclusions vary from company to company with some being more strict than others. Some exclusions shared among most companies are claims related with drugs, crimes from war and self inflicted claims. Many companies will also refuse to cover you for a medical condition that you already have, i.e. had before you took he policy out. For example, if you have had a heart attack or cancer in the past, they will more than likely be excluded from your policy.

Check all terms and conditions of any policy you are thinking of purchasing.

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