Disadvantages of Critical Illness Insurance

Disadvantages of Critical Illness Insurance

18 Mar 2021

Wish you could be protected from getting sick or injured? Whilst nothing can make you superhuman, there are ways you can help yourself worry less about what would happen if you got seriously sick and started to struggle financially. One of these ways is with a Critical Illness Cover policy. Life protection insurance policies are there to help you out with money so that you don’t have to stress about finances in an already difficult time. 

A Critical Illness Cover policy might be the right choice for you, but it’s important that you understand the downsides to it first! 

So...what is Critical Illness Cover?

With life expectancies in the UK on the rise each year, you’re now more likely to get sick or injured before you’ve fulfilled your financial commitments like raising your kids or paying your mortgage. 

Critical Illness Cover (CIC) can alleviate that financial burden and allow you to take time out to recover when you’re seriously ill. CIC won’t cover you for a cold or the flu, but it’s there to fall back on if you get a serious illness (like M.S, Parkinsons, or some types of cancer) or incapacitating injury (like loss of limbs). 

CIC is pretty simple. When you get sick or injured you’ll be paid a tax free lump sum which acts as a financial safety net to help cover regular outgoings as well as healthcare and any specialist medical equipment that could take a chunk out of your savings. You can buy CIC along with a Life Insurance policy or other types of cover to give yourself all round protection. 

When you buy your policy, you decide how long you need cover for. Many people choose to buy a policy that will cover them until their mortgage is paid or their children leave home, which helps them to feel like they can protect their families and meet their financial commitments even when they’re sick. There are some policies that allow you to cover children on your policy, so if your children fall sick you can claim and cover their medical costs too. 

What are the disadvantages of Critical Illness insurance?

There’s so much to be grateful for with Critical Illness Cover, the biggest pro of course being that cover is there for you when you need it most. If Critical Illness Cover sounds perfect for you, great! But there are some things to be aware of with every insurance product, CIC included. 

Here are some disadvantages to consider:

  • You won’t be covered for everything
  • You can expect to be covered for serious conditions like heart attack, stroke, cancer, multiple sclerosis, Parkinson’s disease, or the loss of arms and legs (unless you have suffered any of these previously, as pre-existing conditions won’t be covered). However, there are many conditions that aren’t covered and these will vary from one provider to another, so it’s important to make sure you’re reading the fine print and buying cover that suits you.

    CIC also won’t pay out a lump sum if you die of the illness or injury though. You can only make the claim when you fall ill, rather than your family claiming after you pass away.

  • Premiums can be pricey
  • You can find a policy to suit almost any budget, but it’s important to remember that you get what you pay for. When you pay more, you’re likely to be covered for longer, for more conditions, and for a larger pay out. If you’re unsure, just get in touch with us at LifeSearch. We should be able to find you a policy to meet your budget, and we’ll do our best to find something that meets your needs.

  • You’ll only get one pay out
  • Most providers will only pay out for one claim, so if you fall ill more than once you won’t be able to claim again. However, with the help of an insurance broker, it may be possible to find an insurance provider that will pay out more than once. In fact, there are some Critical Illness protection providers that will pay out smaller sums after previously paying out for a claim. Still weighing up the pro's and con's of critical life insurance? Read our article for more information.

Which type of cover is right for me?

If you’re not sure if Critical Illness Cover is right for you, that doesn’t mean that there isn’t a type of Life Insurance that could help you out. Whilst it’s not pleasant to think about getting ill or injured, insurance products can help to give you a little peace of mind. The idea of getting sick is still scary, but at least you don’t have to worry about how you’d cope financially in that situation. Money might not be able to buy happiness, but it can buy protection for you and your loved ones if you fall ill, and with that in mind we think it’s pretty important!

With a fair few insurance policies out there that protect you in a few different ways, make sure you’re looking at the big picture when choosing the policy for you and your family. LifeSearch can help. Call 0800 316 7253 today to chat to someone who cares about protecting the life you love.

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