What is Critical Illness Cover?
Critical illness assurance pays a tax-free lump sum on diagnosis of any one of a list of serious illnesses, some of the most common illnesses being cancers, strokes and heart attacks.
The unexpected cost of critical illness*
Suffering from critical illness has a huge impact on everyday life. A large percentage of people who were diagnosed with a critical illness were working at the time.
With ever better treatments, survival rates are improving, but while in treatment the costs are high – more than the financial impact of having a child. That’s down to extra costs as well as lost income. .
On top of coping with being diagnosed with a critical illness, people are faced with additional financial pressure from unexpected bills. For instance, there might be travel costs for treatments, while a fifth of cancer patients see their annual fuel costs rise by almost £200 (*5).
So many people who are diagnosed with a critical illness are just unable to cope financially.
In addition to day-to-day living costs that need to be covered if unable to work, there are other additional costs to consider if caring for someone who is ill.
The most common extra expenses can be transport to the hospital, doctor or chemists, and parking.
Costs can quickly add up
If there’s more than one earner in your household, it’s worth putting both contributions under the microscope. Research shows half of women aged 25 to 45 haven’t considered protection, though 27% say their households would lose over £25,000 a year if they fell ill. (*6)
Think beyond any potential crisis too. Some policies offer rehabilitation to help you regain your fitness, for example. This might reduce your financial payout but could help you reach your ultimate goal of getting back to work more quickly.
Opting for the cheapest policy or the most familiar brand won’t necessarily give you the best product. An expert can help you look at the details so you get the right cover – and make sure it’s reviewed regularly and adjusted in line with your income.
Scary as that may sound, the good news is that medical advances mean more people than ever are surviving conditions that might have killed previous generations.
The problem is how do you pay for the treatment or time off work if you don’t have any cover in place?
Why have Critical Illness Cover?
We never think a critical illness is going to happen to us, especially when we feel fit and healthy, but it can and does happen!
If you stop and think about it for a moment, you will probably realise you know of at least one family member or friend who has been directly or indirectly affected by one of these life-changing events.
The scary thing is most home buyers purchase life assurance when they arrange a mortgage, but only a minority obtain another form of financial protection that they are more likely to need before they reach retirement.
Critical Illness Cover can provide that desperately needed cash support to allow people and their families to pursue a less stressful lifestyle while they recover from illness, buy more specialist medical care, or for any other purpose like paying off their mortgage.
It is commonly known that cancer is the most common reason for a claim on a critical illness policy, this is followed by heart attacks, strokes and multiple sclerosis. It’s also worth noting that in Legal and Generals claims statistics for 2021, children’s critical illness payouts were highest for cancer followed by benign tumours and stoke’s.
But be careful to use a quality policy and provider as the number of critical illnesses covered by each plan vary massively, so make sure you take professional advice!
Looking at any insurance provider’s claim statistics reminds us how widespread critical illness is – however it doesn’t emphasise enough the true impact this has on an individual and their family.
What sort of reality are people facing? How long will they be off work? Are they single and have just one income to rely on? Do they need someone to care for them? Or are they married with children who need to be looked after? If so, will their partner be able to continue working? And what about the lifestyle changes they’ll need to make and additional costs they’re likely to face?
It’s hard to imagine how people can cope with all of this at a point in time when money cannot and should not be the main concern but it’s a reality that many people are facing.
If you have a family, did you know that if you take out life cover and critical illness cover, some insurance providers include an element of cover for your children for free?
Many people expect to be automatically accepted for this cover, but age and ailments can create exclusions or even cause you to be declined for cover altogether.
So the best bit of advice we will ever offer you around critical illness is: “Whilst you are young, fit and healthy, get your critical illness cover in place!”
Why use a Broker for Life Assurance Needs?
Basic cover
The price you are first shown on a price comparison website may not always be what you end up paying. There are concerns that aggregator websites are providing quotes for the most basic cover to ensure that a company appears at the very top of the results page. However, once you go through and add in all of the extras to get the cover that you need, you might not actually be getting good value for money.
‘Cheap’ isn’t always best
It’s all in the name. Price comparison websites aim to find insurance based on the price not on quality of cover!
‘Cheap’ insurance can cost you more in the long term if you do not have the right cover in place when making a claim. It is important to check the quality of the cover to ensure you are protected should the worst happen.
Price comparison sites
Because policies vary widely in the cover they offer, the best way to buy Critical Illness Insurance is through a financial adviser or a broker specialising in protection insurance.
Not only will a specialist adviser be able to trawl through various policies on the market, they will also be able to advise you on whether a critical illness policy really is appropriate for your needs.
An adviser will also be able to help you decide how much cover you need, how long the policy should last and whether you should combine critical illness and life cover.
Having access to some of the UK’s top insurance providers, we can advise you on comprehensive products at prices that won’t break the bank. Don’t delay, give an experienced JF Financial Associates Insurance Broker a call today on 0345 508 8588
JF Financial Associates will never sell you something you don’t want. We offer advice on what you need!
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