Critical Illness
insurance

How to Insure Against Critical Illness

How to Insure Against Critical Illness?

Whether or not you are covered by NHS insurance won’t make a difference if you ever have a critical illness that will debilitate you for any length of time.

Critical illness insurance isn’t only cover for life threatening situations, although it does provide that. This is a specific type of cover which has been designed to pay an upfront lump sum or income upon the diagnosis of certain debilitating or life-threatening conditions.

Whether you have loved ones depending on your financial support or you would be in need of the income yourself, understanding how to insure against critical illness should be of utmost importance.

With current and projected austerity measures, government benefits have been cut back dramatically so that you will not be able to count on them for support. The question to ask yourself at the moment is, do you have adequate cover?

How to Insure Against Critical Illness

What Does Critical Illness Insurance Cover?

As mentioned, critical illness insurance covers life-threatening and/or debilitating conditions that would render you unable to work and often unable to care for yourself.

Some illnesses may be fatal but that is not a condition for buying critical illness insurance. Most policies cover various types of critical illness, such things as strokes, heart attacks, cancer in certain types and stages, multiple sclerosis and also dismemberment (loss of limbs).

Bear in mind that each policy is set up differently and the type and amount of cover you have will be defined by the insurance company and the policy you hold. Some policies have exclusions for certain illnesses whilst others have quite exact limitations. This type of policy only pays out once when you apply to draw on the benefits. How and for what you choose to use your payment is in your control. Do you want to pay medical bills or a mortgage? No problem, just use the payout as you see fit.


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When and How to Insure against Critical Illness

Of course you should purchase this critical illness cover whenever you have debts that you would not be able to meet should you suddenly become critically ill and unable to work either for an extended period or permanently. For example, if you have a mortgage or enough debt to be bankrupt by a critical illness, it would be the right time to start shopping around.

As well, heads of households with families to provide for should always consider purchasing critical illness cover. It only takes one brief moment in time to render you unable to provide for your loved ones and critical illness cover can help pay off some of the larger bills that would not get paid otherwise.

Critical illness insurance can be purchased in a number of ways, depending on your intent for buying the cover. If you are buying this type of cover to protect assets such as your mortgage, a mortgage adviser may be able to help you. Unfortunately, there is more to think about than just a mortgage which is why most people shop directly through insurance companies. Just remember that no two companies operate in the same way and some will simply try to sell you insurance whether it is the right cover or an adequate amount for your particular needs.

Take the time to shop around a bit to see what different insurance companies have to offer. Some may have lower premiums but a reputation for unethical claims procedures. Others may have slightly higher premiums but may also be industry leaders in the reputation and ethical payouts. Once you determine how much cover is adequate for your needs under life-threatening or debilitating illnesses, it’s time to find the right critical illness insurance for you.


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