Critical Illness policy

Do You Need Critical Illness Cover?

No one knows what’s around the corner, and if you’ve got a family to take care of, it can be comforting to have the right protection in place if something should happen to you. Many people take out life insurance to provide financial security, but what if you were to be diagnosed with a specific critical illness?

While it is certainly not a pleasant scenario, consider what would happen to your financial situation if you were diagnosed with a critical illness. Would you have to stop working? What impact would that have on your day-to-day life?

What is Critical Illness cover?

Critical illness cover is a type of insurance policy that can help you if you were diagnosed with a specified illness. It can provide a lump sum pay-out, offering a helping hand during a difficult time.

1 in 2 people will be affected by cancer at some point in their lives, according to Cancer Research UK. A policy such as critical illness can give some financial support to help you and your family through a tough time. It’s important to read your policy documents and make sure you are familiar with which illnesses are covered.

According to the 2019 Child Action Poverty Group report, the cost of raising a child up to the age of 18, including rent and childcare for a single parent is estimated to be £185,00 and £151,000 for couples. With a pay-out from a policy, you can continue to fund your children's future and help mitigate the financial impact you may face.

Why should you buy critical illness cover?

Critical illness cover can be incredibly helpful for a number of reasons, particularly if you would not receive enough benefits in the event of becoming critically ill or don’t have enough savings to fall back on. In many cases, you may receive state benefits or benefits from your employer, but it’s not always enough.

An insurance policy like critical illness cover can offer additional financial help at a time when it’s needed most. If you have a mortgage to pay, along with bills and childcare, having a policy in place can mean the financial burden is alleviated.

Being diagnosed with a critical illness can have a devastating impact on your everyday life, and worrying about money should be the last thing on your mind.

Does life insurance include critical illness?

Life insurance and critical illness don’t always come as a package, but you can take both types out. You can take both types of cover out separately, or as one combined policy. If you take both out as a combined policy, you’ll only pay one monthly direct debit; although it’s important to remember it will also only pay out the full sum assured once and you’ll be covered on a first event basis.

You can also take both types of cover out separately. You’ll pay for two policies but you’ll be covered and protected for both outcomes, unless you pass away first.

Is it worth buying critical illness cover?

Being diagnosed with a critical illness can have a huge financial impact, and you may still have bills and a mortgage to pay. Critical illness cover can help to reduce some of this impact, and can be used for things like medical treatment as well as everyday living costs.

You can choose how much cover you need. Think about how much your monthly outgoings are, and how much you’d need to keep up the lifestyle your family is used to. Some policies will even cover your children if they were to be diagnosed with a predetermined condition, although it’s important to check the benefits of your cover.

The type of policy you choose can depend entirely on your personal and financial circumstances; everyone is different. To get a better idea of your most suitable options, get in touch with us today and let us help you.

Please note the above does not constitute as financial advice and may change dependent on individual circumstances and budgetary requirements.



DISCLAIMER: Life & Critical Illness insurance is not a savings or investment product and has no cash value unless a claim is paid.