No-one likes to contemplate the possibility that they or their family might become critically ill. However, since 20% of all men and 25% of all women in the UK become critically ill before retirement age, it is important not just to consider the possibility but also to prepare for it happening.
What is Critical Illness Cover?
Critical illness cover enables you to do this by giving you financial security if you become seriously ill by giving you a tax free lump sum.
What is the Benefit of Critical Illness Cover?
As a result more and more people in the UK are taking out critical illness cover. One of the principal reasons behind the increasing popularity of critical illness cover is that the illnesses it protects against are very common and frequently leave people incapacitated and in need of medical care and financial support.
If you are diagnosed with an illness covered by your critical illness insurance policy then you will receive money that can be put towards these medical expenses and the costs of living that you are unable to meet if you cannot work.
This means that by taking out critical illness cover you will be able to look after yourself if you become seriously ill. It also means that those who are dependent on you will nott suffer as you will be able to continue to take care of them with the payout from your critical illness insurance policy.
What are the Restrictions on Critical Illness Cover?
Unlike other types of insurance, you can use the money from your critical illness cover in any way that you like. For example, you can use it to pay for:
- Paying for medical treatment
- Making up for income that is lost from being unable to work
- Paying off a mortgage
Extending Critical Illness Cover to Children Critical illness cover can also be extended to protect children. If you include your child in your critical illness insurance and he or she becomes seriously ill, then you will receive a lump sum payment. You will be allowed to keep this payment even if your child recovers.
