What is critical illness cover insurance?

Critical illness cover insurance provides customers with an insurance policy that will pay out a tax free lump sum to a customer who is diagnosed with a critical illness, and lasts through the survival period. The list of critical illnesses covered will vary from one critical illness cover insurance policy to another.

The survival period also varies in length from one critical illness cover insurance policy to another, but is generally around 28 days from first diagnosis of the critical illness that the customer must live to be eligible to make a claim.

What critical illnesses are covered by a critical illness cover insurance policy?

The critical illnesses covered by a critical illness cover insurance policy will vary from policy to policy, although you can generally expect cancer, heart attacks, heart disease, lung disease, Alzheimer’s, Parkinson’s and heart bypass surgery to be covered as standard.

Considering the first policy in 1983 had just four illnesses covered, there is now one policy with over 160 different illness covered, although 30 is about the standard number.

It’s important to pick a critical illness cover insurance policy which covers illnesses that run in your family, as you are more likely to suffer from those.

Where does critical illness cover insurance come from?

Critical illness cover insurance was created in 1983 by Dr Barnard, who had become frustrated that many of his customers were in dire financial situations as a result of being unable to work, and the stress of the situations was affected their recovery.

He created the insurance in South Africa, and since then it has gone on to grow around the world. It remains the only insurance policy offered anywhere in the world that was created by a medical professional.

Why do I need critical illness cover insurance?

You should have critical illness cover insurance if you have financial responsibilities, like a mortgage or children to look after. There’s no way of knowing when a critical illness may hit, and for how long you’ll be off work.; Even the most generous sick pay schemes run out eventually, and the money from a critical illness cover insurance payout can leave you financially secure at a time of great stress and worry.