What is a critical illness cover?

Critical illness cover is an insurance policy that pays out a tax free lump sum to anyone who is diagnosed with a critical illness from the insurers list, and lasts through the survival period. The survival period is a period stipulated by the insurer, but is usually around 28 days, and the customer must live through this period from first diagnosis of their illness to be able to make a claim.

Why do I need critical illness cover?

Critical illness cover is vital to everyone with financial responsibilities like a mortgage or children. You never know when a critical illness might strike, and the results can prevent you from working. Those you are self employed, or work on contracts will immediately start to feel the pinch, whilst those who have even the best company sick pay benefits will find that it starts to stop paying out after six months or a year.

You need to ask yourself how your family would afford to live if you were no longer earning money and a critical illness payout can be vital to the many families who find themselves with an earner with an illness.

What can I use a critical illness payout for?

You can use the critical illness cover payout for a number of different uses, the most common being replacing lost income as a result of being unable to work. If you are lucky enough to not need the money for this purpose there are still many uses for the money.

Private health care is expensive, but has many advantages. It often has accommodation for family who come to visit, offers shorter waiting times, private rooms instead of busy wards and while the NHS has fantastic treatment, this can be a long way from home. Private medical care could be a lot closer to your family.

Other uses include home improvements or alterations to help you deal with your illness. This could include installing ramps and a stair lift.

Where does critical illness cover come from?

Critical illness cover was thought up by a doctor, and remains the only insurance product on the market that has been created by a medical professional.

Dr Barnard got frustrated with his patients worrying about their finances, rather than concentrating on getting better and created the cover.

If you are looking to purchase a critical illness policy you may want to also purchase serious illness cover as well.