My Life Insurance Expert
Life Insurance and Critical Illness
Understanding sickness and critical illness cover
Posted on 23. Sep, 2011 by admin in Life Cover
Critical illness cover is a form of insurance.
That much can be easily deduced from the title alone but the reality is something that may take a little thinking about.
The different natures of illness
Illness may strike at any time and any age, ranging from minor ailments that we take in our stride and which have no significant effect on our lives whatsoever, right up to critical illnesses that may threaten our life or the continuity of anything approaching a normal lifestyle.
Of course, these are not pleasant situations to contemplate but it may be necessary to do so, if we wish to act responsibly towards our family and loved ones.
Durations
As sicknesses vary in their duration, intensity and impact, there are different insurance products designed to help with financial protection against the consequences:
- if you are in employment then your employer may have a sick pay scheme that may meet your salary to 100% for some weeks and then perhaps 75%-50% for some times after that – though some schemes typically reduce to zero after some months, such cover may be sufficient to cope with many of life’s more trivial ailments and interruption to working;
- if you are self-employed, you may be able to find sickness insurance that will provide similar cover;
- if you are slightly more seriously ill or suffer an accident that means you are unable to work for more extended periods of typically up to 1 year or so, then you may find forms of sickness or short-term income protection insurance that will cover you;
- if your illness is of longer duration and seriously debilitating to the extent you will be unable to obtain income in the longer term, you may wish to consider critical illness cover.
Critical illness cover
This is a form of insurance that will typically pay out a lump sum if the event you are unfortunate enough to be diagnosed as suffering from one of a specified range of conditions.
Critical illness cover quotes may typically outline (or link to) the list of conditions covered. You may find that there are many conditions defined as being critical.
The money may prove to be useful not only in helping to cover for your lost income but also in contributing towards the additional expenses you may incur arising from your illness, such as home help and so on.
Of course, having critical illness cover cannot necessarily help you deal with the challenges of being seriously ill but it may mean that you do not have to add financial concerns to your list of things to worry about.
