How to get critical illness cover
What is Critical Illness Cover?
This cover is a type of an insurance that pays you and your loved ones a lump-sum if you are unable to work due to one of the illnesses defined in your plan. You pay a monthly payment (premium) in order to insure yourself. Some plans will also pay out if a child becomes seriously ill and you can no longer work. Having an insurance provides peace of mind that your family’s finances will always be taken care of.
How much does critical illness insurance cost?
This will vary according to your age, health, and coverage needs. Plans can start at £20 per month for young and healthy applicants, sometimes even less. They can get up to £100 or more for applicants over 50.
What illnesses are included in the insurance?
Different providers will define “critical illness” in different ways, but almost all include stroke, heart attack, and some forms of cancer. It’s important to read the list of illnesses included in your plan – some will be very long, some will be shorter. The illness must be severe and usually result in permanent symptoms. However, this is all dependent on the specific policy and insurer that you end up using.
What if I develop a less serious illness?
Many providers offer a partial payout for illnesses that are less severe, as defined by the policy. Typically the payout will be around 20% of what you’d receive for a severe illness. If your condition worsens or you become critically ill again, it is still possible to receive the rest of your payout.
Does critical illness insurance cover pay out if I pass away?
Many providers do not pay out if you die, but some will, as long as you live for a certain amount of time. For most providers, the time period is 10-14 days.
What if my children become critically ill?
A lot of plans have the option to include children in your critical illness insurance at no extra charge, however the payout is usually more limited.
What does critical illness insurance pay out?
This will depend on your policy, but typically the higher your premium, the higher your payout. Average payouts tend to be around £45,000-65,000. It’s common for providers to offer plans ranging from £10,000-200,000.
Is the critical illness cover payout tax-free?
Yes, your insurance payout is not taxable.
How can I spend the money from my critical illness insurance?
You can use your payout however you’d like. Many use it to cover emergency medical bills, pay off debts, or pay a mortgage. If possible, it’s wise to invest the lump-sum so it can continue to generate income for you and your family.
Can I get my illness cover as part of a life insurance plan?
Yes, many life insurance providers offer an option to include this cover. In fact, most providers don’t even offer it separately but rather as part of a larger insurance bundle such as life insurance and critical illness cover.
How can I get covered now?
This one's easy! Click here to get yourself a free critical illness insurance quote.