What is Critical Illness Cover and What Can It Include?

Critical illness cover is a type of insurance. It gives you money if you become very ill with certain illnesses listed in your policy.

The three illnesses people often claim for the most are:

• Cancer
• Heart attacks
• Strokes

But it doesn’t end there. Policies can cover anywhere from around 10 to over 100 illnesses, depending on the company. Other common illnesses might include:

• Multiple Sclerosis
• Permanent loss of vision or hearing
• Losing arms or legs
• Motor Neurone Disease
• Organ failure or needing a transplant
• Severe burns
• Paralysis
• Alzheimer’s Disease
• Parkinson’s Disease
• Coma

Different companies have different rules about what counts as a critical illness, so it’s important to read your policy carefully.

Do I Need Critical Illness Cover?

If you get really sick, this type of cover can help you financially. You might use the money to pay off debts, keep up with your house payments, pay your bills, or change your home to make life easier if you become disabled.

Sadly, anyone can get a serious illness at any time. In the UK, even young people are getting these illnesses more often.

Having critical illness cover could also mean you can afford better medical treatments or therapies that might not be available on the NHS. It could help your family cope better financially, allowing you to focus on your health and recovery.

Important Statistics on Major Illnesses:

• About 25% of new cancer cases each year happen to people younger than 60 (Cancer Research UK).
• Half of people born after 1960 might get cancer at some point.
• More than 900,000 people in the UK have survived a heart attack (British Heart Foundation).
• Over 40,000 people under 65 in the UK have dementia (Alzheimer’s Society).
• 277,000 people in the UK are registered blind (RNIB).
• Over 107,000 people have Multiple Sclerosis in the UK, and most are under 60 (Multiple Sclerosis Society).
• Around 145,000 people in the UK have Parkinson’s Disease (Parkinson’s UK).
• Approximately 250,000 people in the UK suffer severe burns each year (NHS).

Remember, not every illness will always be covered. Less serious cases might not count, and some companies might only cover certain stages of illnesses like cancer or heart attacks.

How Does Critical Illness Cover Work?

1. Pick the amount of money you want and how long your policy lasts.
2. If you get one of the listed illnesses, you can make a claim.
3. Give medical proof to your insurance company.
4. If your claim is approved, you get the money, and your policy ends.

You can usually spend the money however you choose, whether it’s on medical bills, home adaptations, or daily living costs.

How Much Cover Should I Choose?

The amount you need depends on your life and what you can afford. Consider:

• How much you owe on your home or other debts
• Your daily living costs
• Possible medical expenses
• Money needed for private treatments or travel costs for treatment
• Funds to replace your income if you can’t work
• Money for childcare or other family costs

What Makes Critical Illness Cover Cost More or Less?

• Age: Older people usually pay more because they’re more likely to get sick.
• Health Now: Your weight, height, smoking habits, and general health matter.
• Medical History: If you’ve had illnesses before, it might make your insurance more expensive or some illnesses might not be covered.
• Lifestyle: Dangerous jobs or hobbies might also raise the cost of your insurance.

Choosing the Right Policy:

Level or Decreasing Cover?

• Level Term: The money you get stays the same during the whole policy.
• Decreasing Term: The money you get goes down over time, usually as your debts get smaller.

Guaranteed or Reviewable Premiums?

• Guaranteed Premiums: You pay the same amount throughout your policy.
• Reviewable Premiums: Your payments might go up every few years based on the company’s review.

Single or Joint Cover?

• Joint policies cover two people but only pay out once, for whoever gets sick first.
• Separate policies might cost a bit more but cover each person individually.

Number and Definitions of Illnesses Covered:
Make sure to check how many illnesses are covered and their exact descriptions. Clear rules help you know if you can make a claim.

Critical Illness Cover vs Income Protection:

• Critical Illness: One-time payment for specific illnesses.
• Income Protection: Pays you each month if you can’t work due to illness or injury.

Income protection gives long-term help, but critical illness cover gives you a single big payment quickly. Sometimes people have both types of cover to fully protect themselves.

Choosing the Best Critical Illness Policy:
Look at these things:

• How often the insurance company pays out claims
• The number and types of illnesses covered
• How clearly the illnesses are described
• Rules about survival and telling your insurer about your illness quickly
• Customer service reviews and experiences from other policyholders
• Extra benefits like cover for children or additional medical support services

Critical illness cover can provide important money support when life gets tough, so you can focus on getting better and spending time with the people you love.

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