A silver lining

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Also known as critical illness insurance - this is a long term insurance policy covering serious illnesses listed within a policy. The policies will differ as to which injuries and medical conditions are listed, they will also state how serious the condition must be to be eligible for a payout. This type of insurance does not pay out upon your death.

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There are some serious illnesses which may not be covered in your policy, such as some types and stages of Cancer. In likelihood, you probably won’t be covered for pre-existing health conditions which you knew you had prior to taking out the insurance. 

 

Examples of critical illnesses which may be covered in your policy include:
-  Heart attack
- Stroke
- Multiple sclerosis
- Certain types and stages of Cancer

 

The majority of policies will also consider permanent disabilities as a result of injury or illness. Some will make a smaller payment for less severe conditions, or if one of your children have one of the specified conditions. Your critical illness policy will only pay out once - then the policy ends.

What’s covered and what’s not, will be set out in the policy details so make sure you’re fully aware of them and that they cover your needs.

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In the event of you being diagnosed with a listed illness, your policy will pay out a tax-free, one-off payment which can help you pay your mortgage, rent, debts, or wheelchair access to your home (or other necessary alterations to your home.)

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Similar to life insurance, there are many factors affecting the amount you will pay for your critical illness cover such as your age, health, lifestyle,  smoking status, the length of the policy and also the amount of money which you want to cover. Critical illness cover will also factor in your job role as some occupations carry a higher risk than others, meaning that you may have to pay a higher amount each month.

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