In this blog, Senior Financial Adviser Andy Geddes gives an overview of Critical Illness Cover....
What is Critical Illness Cover?
This previously known as ‘dread disease cover’, and was the brainchild of the famous heart surgeon Dr. Christian Barnard.
It pays a lump sum on diagnosis of a specified critical illness, such as heart attack, stroke, cancer, and many others.
Why do I need Critical Illness Cover?
If you were to be diagnosed with a Critical Illness, it would undoubtedly have a major impact on your life, so at a time where your health is a concern, critical illness cover ensures that these concerns are not compounded by financial pressures.
Having a lump sum to fall back on could also mean that you would not need to return to work as quickly, allowing you sufficient time to properly recover, or it could even provide a lump sum to repay your mortgage early.
How much does it cost?
Your health, whether or not you smoke, and your age will be some of the factors that will go towards calculating the premium. All insurers offer different levels of cover, and premiums, and so it really is worth seeking professional advice.
How does it pay out?
It will pay out the sum assured on diagnosis of a specified critical illness, the resulting payout can then be used to help make your life better at what would undoubtedly be a difficult time.
Choosing the most appropriate level of cover, type of policy and provider can be difficult, and therefore taking professional financial advice can be massively important.