Critical illness cover
What is Critical Illness Cover?
Critical illness cover (CIC) is a life insurance policy designed to financially cover you and your family should you become diagnosed with a specified illness that is serious enough to be deemed "critical" or life-threatening.
Life insurance providers have different lists of critical illnesses that they cover - so be sure to check what illnesses you are covered for when taking out your policy.
If you think your family would struggle to pay household bills, the mortgage or any other expenses if you became critically ill, you should definitely consider CIC.
What does critical illness cover include?
Usually, the insurer will pay out a lump sum of money to the policyholder if they become critically ill. The lump sum can then be used in the policyholder’s lifetime to help with the financial loss of income from being unable to work. The lump sum that is paid out to you, the policyholder, is tax-free and is paid out if you fall ill during the term of your policy - as long as the specific illness is covered with your life insurance provider.
CIC differs from some insurance policies that provide a monthly payout for a set period of time, such as income protection insurance, and you can use the payout however you choose.
If you took out a critical illness policy for 30 years with an assured amount of £200,000, then if you suffered a heart attack within that time you would receive the £200,000 (no tax deducted). Just remember that the heart attack must be covered by your insurer for you to be able to receive the payout.
Is critical illness cover the same as life insurance?
It is important to realise that critical illness cover and life insurance are two different financial products. The first type of cover pays out if you fall ill, whilst the second pays out if you die, both within the policy terms.
You do have the option of combining the products and having critical illness cover as an add-on to your main life insurance policy. This is a popular option and many people tend to use the two products in this way, as buying CIC alongside life insurance usually makes it cheaper.
If you combine your critical illness cover with your life insurance then there is normally only one payout – if you become critically ill or you pass away – the combination of policies offers greater protection but does not double the payout.
What is considered a critical illness?
The policy terms vary according to the insurer. For example, critical illness cover with Legal and General might have different definitions of what is considered a critical illness when compared to Aviva’s critical illness cover. At 2MinuteQuote, we work to find the best policy and provider suited to you, as well as the cheapest offer.
Generally, most critical illness cover policies will include some, if not all, of the following as a basic remit:
Heart attack
Stroke
Kidney failure
Cancer (more detailed terms apply)
Serious coronary disease
Major organ failure/transplant
Multiple sclerosis
Loss of speech
Heart valve replacement
Deafness
Degenerative brain disorders
Coma
Terminal illness
Motor neurone disease
Chronic lung disease
Chronic liver disease
Parkinson’s disease
AIDS
Muscular dystrophy
Head trauma/brain tumour
Bacterial meningitis
There are often a lot of questions regarding this aspect of critical illness cover, such as whether rheumatoid arthritis, fibromyalgia and mental health are covered.
As the list of covered illnesses differs from provider to provider, a life insurance broker like us at 2MinuteQuote can be an excellent way of comparing critical illness cover plans. Our advisors will listen carefully to your needs and requirements and then offer the best policy they can find for you, for the most reasonable rate.
It is very important you know what illnesses are covered when taking out critical illness cover so that you are aware of your type of policy. Speak to one of our advisors today, the number is free and our quotes are obligation-free.
Can I have Critical Illness Cover without Life Insurance?
Yes, you can get stand-alone critical illness cover in the UK without life insurance.
If you are single with no dependants but you have a large amount of outstanding debt, like a mortgage, then you may want to take out critical illness cover without life insurance – to protect yourself against financial hardship should you fall seriously ill. There are also options available like income protection insurance, so speaking to a life insurance broker is helpful to determine exactly what cover you need and how much.
Bear in mind that CIC is often substantially cheaper if you buy it with life insurance and although you may currently not have a family, you may in the future. Also, seeing as life insurance is typically cheaper the younger you buy it – you could be saving yourself a lot of money in premiums for future cover.
We always advise that you speak to a broker, and that's exactly what we are at 2MinuteQuote - specialists in the life insurance industry who can help you get cover that makes the most sense. Don't hesitate to contact us today, obligation-free.
Is it worth getting critical illness cover?
At 2MinuteQuote, we believe that critical illness cover is one of the best life insurance add-ons available.
When compared to income protection, CIC has one clear advantage – you receive the lump sum payout in one go and the money is there to do with as you please. If you become ill and are unable to work for a set period of time, income protection is an excellent insurance product. However, if you fall seriously ill and can never return to work or go back to your life the way it was, then you may want all of the money upfront to do with exactly as you see fit.
Best Critical Illness Cover
If you have read up on all the aspects of CIC and now you are looking for the best place to buy it or you'd simply like more advice and information, you've come to the right place.
There are a lot of different providers out there and you may be tempted to buy from a price comparison website so that you get the cheapest quote, but at 2MinuteQuote, we can do all the hard work for you and find you a policy that suits you and fits your exact needs.
Give us a call today, at no obligation, and we'll be sure to help, whatever your life insurance needs.