Critical Illness Cover

Critical Illness Insurance policy will provide a lump sum payment if the insured is diagnosed with a specified critical illness, such as cancer, heart attack, or stroke. This money can be used to pay for medical expenses, make mortgage payments, or cover other living expenses while the individual is unable to work.

This list will vary depending on the insurer, as will the exclusions for making a claim.

Critical Illness Insurance often comes as an optional addition to a Life Insurance policy, but can also be purchased on its own.

The cost of the insurance can be more manageable by choosing the right coverage amount and by paying the premium annually or semi-annually instead of monthly.

Policies usually only pay out once, so they don’t replace your regular income, but you can use the money towards medical treatment, your mortgage or anything else you choose.

Many people buy Critical Illness Insurance when they take on a major commitment, like a mortgage, or start a family. However, since we’d all like to have our financial commitments lightened if we were to suffer a serious illness or total permanent disablement, the cover is relevant for most of us at any time.

If you already have Critical Illness Insurance you should think carefully before you cancel your existing policy and take out a new one.

For example, if you’ve developed any illnesses since you first took out the policy, you may lose some of the benefits when you replace it. That’s because pre-existing medical conditions may not be covered by the new policy.