What You Need to Know About Critical Illness Cover

Q&A: What You Need to Know About Critical Illness Cover

Q: What is critical illness cover, and why does it matter?
A: Critical illness cover is a type of insurance. It gives you a one-off, tax-free payment if you’re diagnosed with a serious illness like cancer, a stroke, or a heart attack. It helps cover major expenses when you can’t work due to illness or disability. This means you can focus on recovery instead of worrying about bills.

Q: How does it work?
A: If your doctor diagnoses you with an illness listed in your policy, the insurer pays you a lump sum. You can use this money however you need – for your mortgage, rent, household bills, or even home changes like wheelchair access.

Q: Is this the same as life insurance?
A: No. Life insurance pays out if you die. Critical illness cover pays out if you get seriously ill and survive. Some policies may bundle both, but it’s important to read the details or speak to an adviser.

Q: What kinds of illnesses are usually covered?
A: Policies often cover heart attacks, strokes, some cancers, and conditions like multiple sclerosis. Many also include permanent disabilities caused by illness or injury. But not every illness is covered, and pre-existing conditions (illnesses you had before getting the policy) often aren’t included.

Q: Who should think about getting this cover?
A: You should consider it if:

• You don’t have enough savings to support yourself if you can’t work.

• Your employer doesn’t offer long-term sick pay.

• You’re self-employed.

• You have big financial commitments, like a mortgage or children to support

Q: Will the government help if I get sick?
A: There are state benefits, but they are usually quite low. They often don’t cover all living costs. That’s why many people look to private cover for extra security.

Q: How much does it cost?
A: The price depends on things like:

• Your age

• Your health and medical history

• Whether you smoke

• Your job

• How much cover you want

Premiums are usually paid monthly. Riskier jobs or health conditions may mean higher costs.

Q: What should I do before buying a policy?
A: Speak to a financial adviser. They can help you understand what’s covered and find a policy that fits your needs. It’s not just about buying any insurance – it’s about protecting your future and making sure your loved ones are cared for.

Q: What’s the big picture here?
A: Think of critical illness cover as a financial safety net. It won’t stop you from getting sick, but it can stop your finances from falling apart while you recover. For many families, it offers peace of mind at a time when they need it most.