IS CRITICAL ILLNESS COVER WORTH IT?

What does critical illness cover offer?

Critical Illness Cover is intended to shield you and your family from the financial strain that can come with a critical illness.

This type of policy offers a cash payout if you are diagnosed with or undergo a procedure for any of the specific critical illnesses covered, provided you survive for 14 days post-diagnosis.

The payment can be used for various expenses, such as household bills, childcare, or to help sustain a comfortable living standard if you need to take time off for recovery.

What are the benefits of critical illness cover?

Helps with Important Bills

If a critical illness stops you from working, the money you get can help pay for your mortgage, rent, or medical bills. It’s also useful for making life more manageable after your illness, like making changes to your home.

Tax-Free Money

The money you receive from your claim isn’t taxed. This means you can use it however you need to, without worrying about extra costs.

Covers Many Illnesses

This insurance covers a wide range of illnesses, including several types of cancer, heart attacks, and strokes, giving you broad protection.

Includes Cover for Kids

The policy also covers your children at no extra cost. If your child gets sick with a covered illness, you could receive a payout to help with their care.

What are the downsides of critical illness cover?

No Return if You Don’t Claim

The policy doesn’t have any cash value unless you make a valid claim. This means if you don’t claim during the policy term, you won’t receive any money back.

Doesn’t Cover Death

This cover is specifically for certain critical illnesses. If a successful claim is made, the critical illness policy ends, but this doesn’t affect any separate life insurance you might have.

Not All Illnesses Are Covered

While the cover includes many critical illnesses, there are some that aren’t covered. For instance, not all cancer types are included, deafness is covered only if it’s permanent, and kidney failure is covered only if it requires ongoing dialysis.

To claim, you need to meet the specific criteria set out in the policy.

Cost Varies by Individual

Just like life insurance, the cost of Critical Illness Cover is usually lower for younger people or those in good health. It’s important to choose a policy that suits your needs and budget, and understand that the cover might not be the best option for everyone.

Do I need critical illness cover?

Critical illnesses can strike unexpectedly, impacting anyone regardless of age and significantly disrupting lives.

If you find yourself unable to work due to a critical illness, having a plan to handle the financial strain can be invaluable.

While some might have savings to fall back on or employee benefits to rely upon, others may discover that Critical Illness Cover, with its provision of a lump sum, is a good choice for their financial safety net.

How much critical illness cover do I need?

When thinking about how much critical illness cover you need, look at your situation, how much you can easily pay each month, and whether you want a one-time cash payment or ongoing monthly benefits.

It’s hard to guess when you might get critically ill, so knowing how much cover you need can be tough.

A good way to start is to think about how much money you and your family would need if you couldn’t work because of a critical illness. Would you need to pay for your house, bills, or childcare? If things change later, you can always look at your cover again and change it.

How much does critical illness cover cost?

The cost of your premium can differ greatly, so the best way to know what you might pay is to get a quote.

Here are some things that will affect how much you pay:

• If you smoke or have smoked in the last year.
• How old you are.
• How much cover you need and for how long.
• Your health and way of life, like your weight and your family’s health history.
• Your job – some jobs are considered riskier and might cost more to insure.

What’s the difference between life insurance and critical illness cover?

The main difference between life insurance and critical illness cover is that life insurance provides financial support after your death within the policy term, while critical illness cover helps lessen the financial burden on you and your family if you’re diagnosed with a critical illness.

You can often add critical illness cover to a life insurance policy for an extra fee, but typically it can’t be added later on.

Here are some other key differences:

• Who Controls the Funds: Life insurance usually pays out to your beneficiaries, who then decide how to use the money. With Critical Illness Cover, the payout goes directly to you, allowing you to decide how to spend it.
• Children’s Coverage: Critical Illness Cover often includes protection for your children if they become critically ill, a feature usually not available with standard life insurance policies. Terms and conditions apply.

Remember, these policies are not for saving or investing; they only have value if you make a valid claim.