Critical illness Cover
This is living life insurance. Critical illness cover was designed in the early 1980s, whereas life cover came out in the Roman Times. It brought about the brilliant facility to insure a person who survives death say from a heart attack, stroke or cancer. A cash lump sum was paid to the life insured should they suffer from around 6 to 8 critical illnesses.
Today’s policies can insure in a staggering 45 to 70 critical illnesses and conditions, paying a non-refundable tax free lump sum even when the insured recovers.
It is advisable to insure your mortgage with critical illness cover as well as the life cover (payable on death), this would enable the mortgage to be repaid in the event of suffering a critical illness or death. They tend to come in one policy.
Insuring mortgage debt alone may not be sufficient. If you were to suffer a critical illness or total permanent disability then it can be life changing; a cash lump sum when income from employment may reduce or stop altogether would make a huge difference. Furthermore, it may be necessary for a partner to give up or reduce their working hours to help look after someone that has suffered a critical illness.
In the UK between the ages of 20 and 60, 1:3 men suffer a critical illness and for women it is 1:4.
We strongly recommend that everyone consider some critical illness and life cover over and above their mortgage, ideally a surplus amount of £25000 to £100000 depending on their circumstances.
One of the great benefits of critical illness cover with most companies is that the children are automatically insured to age 18 for up to 50% of the adult cover (to a maximum of £25000). This could help with specialist treatment should a child suffer a critical illness or allow a parent to take time off work to be with their child while they are being treated.
We can provide expert advice in this complex field and select insurance companies to suit your needs. We will work with your budget and help you insure you and your family, should you have one.