1. Cover can be affordable
The cost of Critical Illness cover can vary depending factors such as age, health, occupation and smoker status. The younger and fitter you are, the cheaper the policy so if it is something you are thinking about then do not delay!
2. Critical Illness cover does not cover every condition
Some Insurance companies/policies will cover more conditions than others. The bulk of claims are for cancer, heart attacks or multiple sclerosis so make sure these are included.
3. Children can be covered too!
As a parent the thought of your child falling ill is horrific and doesn’t bear thinking about, but unfortunately, it happens. Many policies (not all) will cover children too for no additional cost to your monthly premiums. They will tend to pay out £25,000 to the parent.
4. The pay-out is tax free
You are not liable for tax on the pay-out and can spend the money how you wish.
5. You can buy it in conjunction with Life Insurance
Many people will purchase Critical Illness cover when they are looking at a Life Insurance policy, however, they can be stand-alone policies.
6. You can fix your premiums
Fixed premiums are typically more expensive initially but could work out cheaper than reviewable premiums in the long run.
7. Policies do not cover existing conditions
Most insurance policies will exclude any pre-existing medical conditions, so if you have been diagnosed with breast cancer they would not cover the cancer or any related conditions. Critical illness cover also typically excludes HIV, self-inflicted injuries and any illness caused by the misuse of drugs.
8. The Insurance Company can refuse to pay if you are not honest
If you fail to tell the insurer any relevant information about your own health, or the health of your family, you could invalidate the policy. In other words, the insurer could refuse to pay up in the event of a claim. It is essential to be honest and upfront on the application form to avoid this scenario.
9. You don’t have to buy critical illness cover from your lender
Many lenders will try and sell you Critical Illness cover when you purchase a mortgage, this is not essential (yes it is advised) but not essential. If it is something you are interested in, you certainly don’t need to go through your lender.
10. Critical Illness cover does not pay out when you die
Don’t confuse Critical Illness Cover & Life Insurance. Life will pay out if you die and Critical Illness will pay out if you survive.