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  • Writer's pictureColin

Do you understand Critical Illness Cover?

Critical illness insurance pays out a lump sum on diagnosis of an insured critical illness. It typically covers: heart attack, cancer and stroke plus many less frequent but equally debilitating conditions.  

We recommend that clients check the key features document provided by the plan issuer to ensure that all illnesses of concern are covered.  It is the case that not all illnesses are covered and those covered vary between providers.  Because one is unable to work as a consequence of an illness does not mean a critical illness plan will pay out. Nevertheless, critical illness insurance is an important part of a protection strategy for a household.

Critical illness premiums are primarily affected by your health, age & term – so the older you are and the later you run the plan, the more the plan costs each month.  Critical illness insurance is available as a stand alone product or as a rider to a life assurance contract.  Many clients also require life assurance so it is often logical to effect the critical illness insurance plan in conjunction with life assurance and income protection as part of a holistic review.

You may take the critical illness insurance as either an accelerated or additional benefit. Accelerated benefit means that if you were to have say £50,000 critical illness insurance and £50,000 life assurance cover and had a stroke the plan would pay out on the diagnosis of a stroke and then end. If you had additional cover the plan would pay out again on your subsequent death. Unsurprisingly premiums for additional cover are higher as in this example you have £100,000 of cover underwritten from an insurers perspective.

Please contact Garden Wall to holistically review your protection needs.  Remember, if you are reviewing your needs due to moving house, you don't have to use your mortgage broker to put your protection in place. Talk to a whole market, holistic protection specialist. 



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