Why Is Critical Illness Cover Important?
21 Nov 2019
How critical illness cover worksJust like other life insurance products, critical illness cover usually pays out a tax free lump sum if you fall ill during the duration of your policy. You can set the length of your policy so that it works with your lifestyle, too. Most people choose to cover the time until their children leave home, their mortgage is paid, or any other financial obligations are met. This means that if you become ill, you’ll still be able to meet these obligations even if you’re unable to work.
Events such as heart attacks, strokes, traumatic head injuries, major organ transplants, kidney failures, and illnesses like Parkinson's, Multiple Sclerosis, bacterial Meningitis and many types of cancer are commonly covered. Watch the fine print for exclusions though - often minor heart attacks or certain types of cancer aren’t covered, so make sure you’re buying a policy that gives you the cover you want.
But I won’t ever get ill, right?You might feel like critical illness cover isn’t important as you’re unlikely to get unwell. Whilst we hope that’s true, the reality is that we are far more likely to get ill before turning 65 than we are to pass away before then.
Medical advances also mean that many more people survive serious illnesses than ever before. This is great, of course, as it means that we’re all more likely to live longer, happier lives, but it does leave us at risk of falling ill and being unable to work and sustain ourselves and our families financially.
The real importance of critical illness cover
Whilst thinking about critical illness cover isn’t pleasant, it’s very important. If your loved ones might struggle to continue living their lives normally without your income, critical illness cover, as well as an overarching life insurance plan, could be really beneficial to them. While, admittedly, it doesn’t feel great sending off money for something you might not use, the peace of mind is so worth it.
The money isn’t just there for costs you had before you fell ill, either. It’s there to help with the costs incurred whilst you’re ill, like any trips to see specialists, or changes needed to your house or car during your recovery. Money might not be able to buy you happiness but it can definitely help you and your family have one less thing to worry about when you’re sick.
Understandably, the buying of critical illness cover usually comes hand in hand with certain events in a person’s life, like starting a family or buying a family home. This is the turning point where critical illness cover and other life insurance products, becomes really vital.
You can buy multiple life insurance products at once, and you can combine your critical illness cover with your life insurance should you choose to purchase both. Sure, it can be a little mind boggling, but it’s an easy way to show your family how invested you are in ensuring they are protected from any financial difficulties that might come your way because of becoming ill or passing away.
If you’re worried about the fine print or just curious about how you can make life insurance policies work for you, then get in touch with us. Here at LifeSearch we can help you make sure your cover, well, covers you! Call us on 0800 316 3166 for friendly, fee-free advice.
How to set up a trust for life insurance
28 Oct 2021
Is income protection the same as PPI?
12 Oct 2021