What is critical illness insurance cover?

Critical illness insurance cover is a form of insurance policy which provides customers with a lump sum payout should they be diagnosed with a critical illness and make it through the survival period. The list of critical illnesses covered will vary from one insurer to another, and many customers will base the decision of which cover to purchase, on which one covers the illness that have run in their family.

The survival period also varies in length from insurer to insurer but is generally around 28 days from first diagnosis of the illness that the customer must live to make a claim.

Why do I need critical illness insurance cover?

Nearly every adult in the UK will have financial responsibilities of some kind, whether it be providing for their children or paying their mortgage. A lot have both, and will worry that should they stop earning money tomorrow, that they would not be able to meet those responsibilities. Death is covered by life insurance, and critical illness is covered by a critical illness insurance cover policy.

While many customers will receive sick pay from the company they work for in some size, shape and form, the majority will find it runs out after six months, and that their illness leaves them off work for far longer.

This can lead to serious worries about finances, and many customers are right to worry, with little in the way of savings to fall back on. With a critical illness insurance cover policy, there is no need to worry, as the lump sum payment will look after the family financially for quite some time, and many people are able to pay off the remainder of their mortgage, so they can guarantee somewhere to live for their family.

Where does critical illness insurance cover come from?

Critical illness insurance cover was invented in 1983 in South Africa by Dr Barnard, who was a world renowned heart surgeon. Along with his brother, Barnard conducted the world’s first heart transplant surgery, and dealt with patients with critical illnesses on a regular basis.

He quickly grew frustrated that his patients were spending a lot of time and effort worrying about their financial situation, rather than worrying about their recovery. Barnard’s first cover had just four critical illnesses on it, but the cover has grown worldwide and one policy in the UK now covers over 160 different illnesses.