Is Critical Illness Cover Necessary?

Is Critical Illness Cover Necessary?

2 Jan 2020

What would happen to your family if you became too ill or injured to go to work and earn the pennies? We’re guessing you wouldn’t be able to meet your financial obligations and keep a roof over their heads and food on the table, right?

That’s where critical illness cover comes in. This is one of the less talked about life insurance products on the market. It gives policyholders a lump sum of money in the event that they are diagnosed with an eligible illness or injury. It’s there to ease the burdens of daily living whilst being unwell, and to ease the financial pressures of being unable to work.

However, with so many insurance products out there, it’s important that you look at all of the options before deciding that a critical illness cover policy would be the best one for you… 

Firstly, how does critical illness cover work?

When you take out a critical illness cover policy, you decide how long your policy lasts. For instance, most people choose to cover the time until their children leave home or until their mortgage is paid. These are the two things you’re likely to worry about most if you become too ill or injured to work - looking after your children and paying the mortgage. Critical illness cover allows you to keep on top of these things, even when you’re out of action.

It’s important to remember however, that not all illnesses and conditions are actually covered in any given policy. It’s usually long-term and serious conditions that are covered such as heart attacks, strokes, cancer, multiple sclerosis, Parkinson’s disease or the loss of arms or legs - but this does differ between providers. Keep an eye on your policies small print, as sometimes minor heart attacks or certain types of cancer won’t be covered. Make sure you’re taking out a policy that gives you the kind of cover that you want.

Critical illness will never pay out in the event of death and you might have to reach a certain level of seriousness before you’re able to make a claim on whatever illness or injury you’re suffering with. None of us are invincible though, so this insurance product will always be worth considering.

The chances of me getting seriously ill are slim though, right?

It depends on your age and lifestyle and whilst we hope you won’t ever have to suffer a serious illness or injury, you’re far more likely to get ill before turning 65 than you are to pass away before then. Surely that’s enough to make you seriously consider this insurance product? 

We’re very lucky to live in a world where medical advancements are keeping us all alive for longer. Whilst that’s fantastic news, it does mean we’re all still at risk of falling really ill and with a family that relies on your income, that can be a real blow to a household.

So, do I really need critical illness cover?

If you have ample savings to cover your outgoings in case you do fall seriously ill, or if your partner is able to cover living costs for the two of you and any shared commitments, you probably don’t need critical illness cover.

If however, you don’t have enough savings to fall back on, or if you’d rather keep those all important savings to one side for emergency situations such as car repairs or other unexpected bills, a critical illness cover might make perfect sense to you. 

You should also double check with you employer that they don’t offer any benefit packages that protect you against long-term sickness. Although it might not protect you for as long as you need it to, it might make a difference to your decision if you already have some level of cover there to fall back on. Statutory Sick Pay for instance is provided by your employer if you become ill and can’t work. The standard rate is £94.25 a week but this is only paid for up to 28 weeks and there are certain criteria that you need to meet to qualify for it. If this won’t be enough to cover your needs, then critical illness cover should definitely be on your agenda.

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 your armour. It can definitely be easy to become a little confused, but that’s where LifeSearch can help. We know what we’re talking about so we’re the perfect people to turn to for a little advice. Call 0800 316 7253 today to chat to someone who cares about protecting the life you love.

Let us get to know you and do the hard work for you

Does Income Protection Cover Redundancy?

16 May 2022

FAQs on what’s available if you can’t work
Read more

Life Insurance with a medical condition

16 May 2022

I have a medical condition – what cover can I get?
Read more

Do I need income protection?

13 May 2022

Anyone who works should consider protecting their income
Read more

LifeSearch Limited is an Appointed Representative of LifeSearch Partners Limited, who are authorised and regulated by the Financial Conduct Authority. Calls may be monitored/recorded.