Protecting you and your family...
What is Critical Illness Cover?
Critical illness insurance, often referred to as critical illness cover, is an insurance policy that pays you a lump sum of money, should you be diagnosed with one of the pre-determined illnesses covered within the policy.
The lump sum of money is designed to support you – and your family, with the life changing circumstances brought about by the illness. The money can be used to pay the mortgage, household bills or equipment required to facilitate the necessary lifestyle changes due to your illness.
Critical illness payments are not classed as income so you will not be taxed on any sum you receive.
What types of illnesses does Critical Illness Insurance cover?
Typically, critical illness covers you for cancer, hear attack, stroke, organ failure, multiple sclerosis, Parkinson’s disease and Alzheimer’s disease.
In most cases, critical illness covers you for around 40 illnesses / conditions although the amount can vary from between 10 to 100!
What types of Critical Illness Insurance are there?
Whilst products vary from provider to provider, typically there is ‘Level Term’ and ‘Decreasing Term.’
Do I need Critical Illness Insurance?
The answer to this is that, if you can afford it, it is always a good idea to have such an insurance policy in place – particularly if you are the main earner and that you have a family that depends on you.
It’s worth understanding that whilst you might be entitled to some form of state benefit(s) these most likely won’t amount to very much; usually around £100 a week which isn’t a lot – especially if you have a family.
Before taking out a policy, it’s also worth, if you are employed, looking into what might be available from your employer – this might help determine the amount of additional cover you require.
How much does Critical Illness Insurance cost?
Whilst critical illness cover can start from as little as £10 a month, there really is no ‘average or typical cost, since there are many varying factors:
Does Critical Illness Insurance always pay out?
Most insurers pay out more than 90% of all claims made. However, there are always a small percentage that are not paid. This is usually because someone has succumbed to an illness, condition or injury that is not covered.
You need also to be aware that some providers / policies can state how serious a condition needs to be before it will pay out.
Where should I get my Critical Illness from?
There are many sources – as quick look online will indicate. As always, ‘knowledge is key’ and it pays to spend some time comparing what seem to be similar offerings. The devil is very much in the detail – and cheapest isn’t always the best answer!
It costs nothing to get some advice from a well – established independent specialist like Dunham McCarthy Mortgages who already know the best providers and who fully understand the small print ramifications.
Answer a few simple questions
The first step is to find out a little more about your situation before scheduling a consultation with the most suitable specialist. Appointments are usually available within a few hours or can be scheduled in the future.
Speak with one of our expert advisors
It’s good to talk, and our friendly mortgage team are here to answer your questions. We do not charge for advice so what are you waiting for, book your appointment today.
Let us find you the best deal
Once we understand your goals the final step is for your advisor to research the market and find you the most suitable product.