Why is critical illness insurance important?
28 Sep 2020
No matter whether you’re a high powered CEO married to the job, or a full-time parent with a partner and multiple kids, there’s a life protection product for you. Critical Illness Insurance is one of the lesser-discussed options, but it’s a very important one and can work for everyone. If you’re on the fence about what type of insurance product to buy, let us break it down for you.
What is critical illness cover?
CIC (Critical Illness Cover) pays out a lump sum when you’re diagnosed with a serious long-term illness or injury. This is different from Income Protection Insurance, which replaces a percentage of your monthly salary. Even those who aren’t employed (such as stay-at-home parents) can get Critical Illness Cover.
When you come to buy your policy, you set the term for how long you’d like it to last for, and pay monthly premiums throughout that time. Many people choose to have cover until many of their larger financial commitments are less substantial; for instance when their mortgage is paid up or when their children leave home. Critical illness cover allows you to keep on top of these things, even when you’re out of action. It can give you a financial safety net to help cover any and all regular outgoings (like car payments, rent, bills, and mortgage payments) as well as healthcare and any specialist medical equipment you might need after falling ill that could take a chunk out of your savings.
Sounds like a dream come true, right? To be financially safe even in difficult circumstances? Whilst it’s true that Critical Illness Cover can be a saving grace for so many, it’s important to remember that not every illness / condition or injury will be covered. You’ll find the majority of policies cover serious long-term (but not terminal) conditions such as strokes, heart attacks, M.S, Parkinson’s, some types of cancer, and loss of limbs.
This does differ between suppliers though, so make sure you understand the fine print before buying a policy to make sure you’re covered how you want to be covered.
Critical Illness Cover also doesn't pay out if you die of the illness or injury. In order to ensure your family receives financial support in the event of your death, a Life Insurance policy combined with CIC should cover you from every angle.
So why is critical illness cover so important?
You might have always been told that life insurance is vital for protecting your family after you’re gone, and this is true, but even whilst you’re alive you might not be in tip-top condition to care for the ones you love. We’re lucky these days to live in a time where life expectancies in the U.K rise higher year on year. This means more time with the ones we love, of course, but it also means we're more at risk of getting sick than before.
Whilst the risk of getting seriously sick or hurt depends on your lifestyle, even the healthiest and most cautious amongst us can fall ill or get injured. Surely in this day and age, you’re far more likely to fall ill before retirement/before your mortgage is paid/before your kids leave the nest than you are to die before then. How would you and your family cope financially if that was to happen? If that doesn’t highlight the importance of critical illness cover, then we don’t know what will!
Of course there may be people out there with a hefty pile of savings or a support system of family and friends willing to help them out financially, but these aren’t a long-term solution. Sure, you might be able to cover mortgage payments or council tax, but what happens if your car gets written off or your boiler goes bust? Having your own savings squirrelled away is always a great idea, but you don’t want to eat away at these indefinitely. Critical Illness Insurance is there to give you a buffer, so you don’t have to dig deep into your savings should you fall ill or get hurt.
Whilst it’s not pleasant to think about getting ill or injured (and hopefully it’s not something you worry about on a daily basis) insurance products like CIC 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 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.