What Is Critical Illness Insurance?
A recent report from the Office of National Statistics stated that an estimated 1 in 4 men aged 30 will have a critical illness such as a stroke, cancer or heart attack before they reach the age of 65. Clearly there is a rising need for critical illness insurance to take care of people during difficult times. Critical illness insurance pays a designated sum after you are diagnosed with a serious illness that prevents you from working to make up for the income you lose.
The money from a critical illness insurance policy can be used for any purpose including paying for your mortgage, medical care and treatment, living expenses or necessary alternations to you home to accommodate a disability. Having a critical illness insurance policy can give you peace of mind and prevent serious financial worries in the event you become ill or disabled.
No two critical illness policies are alike and you must carefully review the terms, conditions and coverage before making a commitment to ensure you get what you need. The Association of British Insurers (ABI) published a list of 23 illnesses commonly covered by these policies, along with the usual exclusions, which are contained in the ABI Statement of the Best Practice for Critical Illness Cover. Some policies may cover only cancer or stroke while others may cover a number of critical illnesses.
The cost for critical illness insurance is based on factors such as your age, sex, occupation, health and medical history. The higher risk involved for insuring you, the more it will cost to purchase critical illness cover. Critical illness insurance can be purchased as an individual, as a small business or with a group such as a union or employer.
If an unforeseen sickness strikes, critical illness insurance will cover
necessary expenses so you and your loved ones have one less worry.