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Critical illness cover

If you want to be sure about your wellbeing, critical illness cover insurance has to be a consideration. Similar to life insurance, critical illness cover pays out on diagnosis of a severe medical condition rather than on the death of the policyholder. These policies have become more popular due to the advances in medical science. Many once fatal diseases are now treatable, meaning Critical Illness cover insurance offers a guaranteed payout whether the policyholder actually dies or not.

Holders of Critical Illness cover have peace of mind that, in the unfortunate event of contracting a serious medical problem, they have a monetary boost to help them through financially. Critical Illness cover is normally paid out in the form of one lump sum, which means that policyholders can use the money to pay off a mortgage, compensate them for possible loss of earnings, or help towards medical expenses. In the event of the policyholder suffering from some form of disability then the lump sum can be used to equip their house with all the latest help available or purchase a car with the right specification.

The diseases that this cover will pay out on include heart disease, strokes and cancer - three of the biggest killers in this country. Recent figures show that one in three of us will suffer from some form of cancer at some point in our lives. That is why this kind of cover is becoming increasingly popular.

Almost all policies have a 'Survival Period' clause within them. This means that the policyholder cannot claim the lump sum until they have survived for twenty-eight days after their diagnosis. Although this sounds a little mercenary it is normally the case that life insurance policies will pay out if the customer dies within this period, whereas if a customer survives the chances of a recovery are stronger and so this policy will pay out. Other diseases that trigger payments in this area include Multiple Sclerosis, kidney failure, major organ transplants, and coronary by-pass surgery.




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