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Critical Illness Insurance

Critical Illness Insurance - what is it and what does it do?

A Critical Illness insurance policy (often referred to as serious illness cover and dread disease cover) is designed to pay out a lump sum on diagnosis of a serious illness.  The list of illnesses is quite comprehensive and can be found in the key features document of each company's product.  Critical Illness insurance can be arranged either as a stand alone policy or as an additional benefit with a level term insurance policy, mortgage protection policy or a family income benefit policy.

Critical Illness cover will pay out a predefined amount upon diagnosis of one of a number of conditions. The list of conditions covered can vary depending upon the provider although the major providers offer protection against around 25 illnesses including cancer, heart attack, stroke, paralysis, major organ transplants, Parkinsons disease, coma, total and permanent disability.

Critical Illness insurance - how it works

If you choose a Critical Illness Insurance policy you will receive a lump sum if you are diagnosed as having one of the serious illnesses listed in the literature.  The lump sum is tax free and the money from your critical illness insurance payout can be used for whatever purpose you require.  Premiums can be paid monthly or annually by direct debit from your bank account.

Why buy Critical Illness insurance?

When someone is diagnosed as having a serious illness it often means they are unable to work any longer or simply may not want to work any longer.  The problem is that the requirement for money is just as demanding and if anything can become greater.

You may find yourself in a situation where you need to hire help or pay for a nurse.  Alternatively you may still be able bodied and might just want to do those things in life that you always wanted to before it is too late!

By having a lump sum or income available to you in these circumstances you are able to choose what is right for you and not be forced into unhappy situations.  You will be able to maintain your lifestyle and not have to worry about the future of your family.

How much Critical Illness insurance cover should I have?

Determining levels of cover is not as easy as it might be because it is always necessary to balance what you would like with what you can afford.  It is always best to determine the maximum amount you are prepared to contribute towards your insurance then calculate your requirements.  Hopefully you will be able to afford everything you want but if you cannot, remember it is better to have what you can afford than try to go without.

Click here for some guidelines on determining your requirements.

How much does Critical Illness Insurance cost?

The premium will depend on a number of factors, including how much cover you need and the term of the policy, your age, sex  and your health.  Get an instant quote now and get an idea of your premium, you will probably be surprised how little it costs.

Why buy through Moneyworld?

A very simple answer!  You get the same high quality product from the UK's leading Insurance Companies for less than any other supplier.  Please discover this for yourself, get as many quotes as you like then return to us and save yourself some money.

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