March 16, 2017

Critical illness Cover

“If you were to become seriously ill, then state benefits may not be enough for you to continue maintaining your current lifestyle and pay your monthly bills, Critical illness cover can help ease the stress of financial burden if you were diagnosed with a serious illness and unable to work”


Critical illness cover or Critical illness insurance is considered a long-term insurance policy, which pays out a one off tax-free lump sum on diagnosis of a specific serious medical condition stipulated by the insurer in the terms of their policy. Not all conditions are covered, and some insurers may insure more conditions than others, it is important to check over the cover to ensure you have the right level of cover in place to meet your requirements. The following conditions are typically covered in most critical illness insurance policies:

  • Heart attacks
  • Certain types of Cancer (not all), and also dependant on their stages
  • Conditions such as multiple sclerosois
  • Stroke

What can the money be used for ?

The one off tax-free lump sum is intended to assist you with ongoing costs such asthe payment of your mortgage, rent, household bills and debts while your condition deteriorates. The money can also be used to make additions and alterations to your home necessary to facilitate the care and mobility elements of your condition, such as wheelchair access and other disability aids. The payout is not conditional for you to spend the money in defined ways stipulated by the insurer,  once paid you are permitted to spend the money in whatever way you like.

What happens if I recover, would I need to pay back the money ?

The tax-free lump sum is paid out on diagnosis of a serious illness, but not straightaway. A condition of most policies is that you must have survived for atleast 28 days after being diagnosed In order to be paid for any claim. If death occurs anytime before the 28 days days, then the policy will not pay out. Once the Insurance company has settled the claim and paid out the lump sum, your policy ends and their is no need to pay back any money that was paid to you, even if you make a full recovery.

Do you need this insurance ?

If you were to become seriously ill, then state benefits may not be enough for you to continue maintaining your current lifestyle and pay your monthly bills. Statutory sick pay is only paid out for a maximum of 26 weeks, after which your income is likely to be significantly reduced, especially if you don’t have much savings or a benefits package at work that will pay out on a longer term basis. Critical illness cover/insurance can help ease the stress of financial burden if you were diagnosed with a serious illness and unable to work. The lump sum could take care of the outgoing bills and household costs, leaving you to deal with the task of getting better without financial stress on top.

Who doesn’t need this insurance ? 

You might not need this insurance if:

  • You have a partner or family member who could cover your financial commitments, such as your mortgage, rent and other household bills.
  • Your Bank savings are adequate enough to pay for the cost of medical treatment, mortgage, and all other monthly bills while you recover.
  • Cover may already be in place and included in other products that you taken out, or included in your work benefits.

How much does it cost?

The following factors will be taken into consideration by the insurer when deciding a monthly premium:

  • Occupation (some occupations are considered higher risk than others, higher risk occupations add a premium on to your policy price)
  • Health Status (level of your current health and your weight)
  • Your family medical history
  • Your age (will be cheaper the younger you are)
  • Smoker or Non-smoker (cheaper if you don’t smoke)
  • The level of cover you wish to take out (the amount you decide you want to be paid if you make a claim)

What are the alternatives to Critical illness insurance ?

As an alternative to Critical illness cover, you could consider income protection insurance Income protection insurance is an insurance policy that pays out a regular monthly payment if you are unable to work due to sickness or injury. Out of the two types of policies, critical illness cover would be the cheaper option, but Income protection insurance however, covers a wider scope of illnesses and conditions, and may also provide cover for a longer period of time if you are unable to work.

For more information on Income Protection Insurance – CLICK HERE

How I can Help

I can provide you with concise and comprehensive advice and assistance regarding all aspects of your Critical illness insurance needs, from initial advice to application stage, and all the way to completion. Having an insurance professional on hand to assist you every step of the process can save you time, effort and money, easing the stress of arranging insurance.

Please contact me today for an informal and friendly chat to discuss your needs. All initial advice is completely free and confidential. You can contact me using the “contact us” form at the top right of this Page and i’ll get back to you as soon as possible, or alternatively you can contact me via my details below, or  CLICK HERE

Thank you for visiting.

Balraj Singh (Bal)



Tel: 0330 010 1433 (Mobile Friendly)

Mob: 07985 417 490