Which is the best Critical Illness policy?

Which is the best Critical Illness policy?

11 May 2020

Money makes the world go round, right? Having enough cash to protect your loved ones from the bad stuff and allow them to live lovely lives is of utmost importance to a lot of us. 

Life Insurance is a great option for protecting your family after you’re gone, but there are ways to safeguard you and your loved ones whilst you’re still alive, like critical illness cover.

Tell me more about Critical Illness Cover

Critical Illness Cover (or CIC) pays out in a tax-free lump sum should you become critically ill or get injured. It’s there to shield you and your loved ones from pricey medical costs, help you out with bills if you need, cover modifications needed to your home or car, or even just to give you a hand with your day-to-day costs. 

CIC covers a number of conditions, like certain types of cancer, strokes, minor heart attacks, and loss of limbs - but what you’re covered for and the amount of your pay-out depends on your policy. If you only want minimal cover and low premiums, you’ll be covered for less, and you’ll receive less money if you make a claim. 

It is possible to find good quality, affordable cover, but it’s important to be realistic and know what you’d like to be protected from. 

There are different types of policy...

Like PB&J, or fish n chips, or nuts and bolts, there are just some things that were meant to be together. Life Insurance and Critical Illness Insurance are a couple of these things. If you’re looking to buy total peace of mind, this is definitely a good option to consider, as you know your family is protected no matter what.

While it makes sense to buy both types of cover, there are different ways to go about it.

Combined Cover.
Combined cover policies will pay out the whole sum of your chosen cover amount when you make a claim, whether it’s death or critical illness. However, you can only receive one pay out. So if you get sick and make a claim, there’s no cover left for if you pass away. There are often buy-back options, but your original policy will be over.

Additional Cover.
Additional Cover policies will pay out more than once, and you’ll be able to claim for critical illness and your family will be able to claim upon your death. These will typically be more expensive.  

There are drawbacks to both, depending on your situation. Going through an experienced life insurance broker can help make sure that you get a level of cover that works for you and fits your budget. 

It’s also worth considering whether you want your children to be covered on your critical illness policy. Many critical illness policies will automatically cover your little ones, whereas some will charge an additional fee, and some don’t cover them at all. 

They’ll typically be covered from either birth or 30 days old, until they turn 18 or 21. An important thing to consider when shopping for your policy is that health conditions from birth, conditions that pre-date the start of the policy, and hereditary illnesses normally will not be covered. If you claim against your policy for your child, you can usually expect between 20 - 50% of the adult rate, topping out at a maximum of £25,000, but all this is dependent on the policy you buy.

If you’re unlucky enough to fall critically ill after claiming against your policy for your child’s critical illness, at least there’s one bit of good news: you can still claim for the full amount you’re insured for at a later date. For many policies, the part of your policy that covers your children has no bearing on your part of the policy. 

Which policy should I buy? 

Here at LifeSearch, we’re not about ‘selling’ you one option over the other when it comes to critical illness cover... we’re here to make sure you get what you need, even if you’re not quite sure what that is. We care about you – and helping you to select the right policy or product for you, your family and all of the things that you value most. 

Talk to one of our experts now, on 0800 316 7253, and we’ll help to bring you policies that work for you, no matter your situation. 


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