Critical illness cover
1 May 2008
Major illnesses can happen to anyone. For example, one in three people will be diagnosed with cancer at some point during their lifetime. Whilst not necessarily fatal, these are not long odds.
If you or someone in the family is diagnosed with a major specified illness, your critical illness insurance cover will pay out – either as a lump sum or a monthly payment.
Be aware that these policies tend to be much more expensive than life assurance policies and, of course, you have to take them out before you are diagnosed with an illness. Most policies will not cover a pre-exisiting condition.
Nonetheless, for many people they are an absolute life saver. They can help to supplement state disability benefits and go a long way to maintaining your standard of living.
The other important thing to remember about critical illness cover is that it pays out while you are living, not when you die, so it could help you enjoy the rest of your days in relative comfort.
It could also help to pay for the treatment you need to extend your life, repay your mortgage and provide a comfortable income so you can spend time with your family.
