What is a Critical Illness?
Unlike a Terminal Illness found with most Life Insurance policies, a Critical illness is more of a life changing experience rather than life threatening (although in some cases a critical illness can be life threatening). Every insurer has their own list of Critical illness definitions, so selecting the right insurer is vital to getting the correct cover in place.
How does Critical Illness Insurance work?
It pays out a lump sum to the insured person, on diagnosis of a critical illness. Nowadays insurers have their core cover which will result in you receiving 100% of the policy pay-out. There are also additional payments which will usually pay a percentage of the sum assured in addition to the core cover, depending on the condition, plus partial payments where again there will be a percentage pay-out. Partial payments can be taken from the original policy amount so this is something to be aware of when considering Critical illness Cover. Most providers will also cover any dependent children under their critical illness definitions, but isn’t always included as standard (and will cost extra). If having your children covered under the policy is important to you, our advisers can talk you through the different options to ensure you have the most appropriate policy in place.