Critical illness cover is a type of insurance that covers critical illness at a tax-deductible rate. Critical illness insurance cover is listed under sickness and injury insurance policies.
According to the ABI, around one million workers in the UK are involuntarily off work due to injury or illness. You never know what the future holds. So it is better to cover yourself and your loved ones when needed.
In this article, we will discuss everything you need to know about critical illness cover. Is it worth buying? How much do you pay per hour? What coverage does it provide? This question will be answered here. let’s start.
How much does critical illness insurance cost?
Critical illness will pay a fixed amount if you fall ill due to a specific medical condition or chronic injury listed in the company’s policy. The list of conditions varies by company and some insurance companies may cover 60 or more illnesses or injuries.
However, if your position is listed, some companies will not pay you until you reach a certain level. For example, some companies won’t pay you until you reach a certain stage of your cancer claim.
So it is important to read the policy before buying the policy. So, you can know under what conditions you can claim.
Some of the illnesses covered by most companies include:
- Epilepsy
- Heart attack
- Some types and stages of cancer
- Organ damage
- Kidney failure
- Chronic conditions such as multiple sclerosis (MS), Alzheimer’s disease, etc.
How much will you pay for critical illness insurance?
Most policies only pay out once and then expire. Some policies may pay you less if you are diagnosed with a less serious illness. And in this case you can ask again if you have any serious illness in future.
Some policies may pay you a specified amount if one of your children is diagnosed with a listed disease.
How much does critical illness insurance cost?
The amount you can pay for critical illness insurance varies. The amount of monthly installments you pay depends on several factors:
- Your age – The older you are, the more you are likely to pay as you claim.
- Health, weight, lifestyle, family medical history and number of current illnesses.
- Smoking habit: If you are a smoker, you will have to pay a heavy price as you may develop serious diseases.
- Your Job – Some jobs are considered high risk jobs and if they are, you will need to pay higher premiums for your insurance.
You have to pay the premium regularly. Because if you stop paying, the insurance company will stop covering your chronic illness. Also, you should understand that you are suffering from any serious illness in your life and you cannot make any valid claim. There is no way to get your premium back.
By adjusting your lifestyle in a healthy way, you can reduce your expenses and lower your insurance premiums. For example, if you are overweight, you can stop smoking or lose weight. All these steps will significantly reduce your insurance cost.
Do you need critical illness cover?
You should consider critical illness insurance as sometimes government benefits are not enough to support your family if something bad happens. You should apply for critical illness cover if you.
- You have a family history of acute or chronic illness
- You are a single earner and do not have enough savings to support your family in case of an accident.
- If you are unable to return to work due to a prolonged illness, your company will not pay you employee benefits.
Why do you need critical illness insurance when you have life insurance?
The main difference is that life insurance pays out to your family when you die, while critical illness insurance pays out when you are diagnosed with a specific illness. This means that when you fall ill and need money for treatment, life insurance will not pay you.
Life insurance pays to provide financial support to your family after your death. Once you have an accurate claim, you can control how the money is spent. But with critical illness insurance, you get paid when you make a valid claim. And when you’re healthy, you can pay your bills, mortgage, medical care, etc., and provide for your family.
Critical illness cover for children is also included in some company policies, but life insurance is not. You can add critical illness cover to your life insurance policy by paying extra.
Final result
If you are the sole earner in your family and you have a family history of chronic diseases, you should buy your own medical cover. Due to limited physical activities in today’s life, diseases like stroke, heart attack, cancer, kidney failure are increasing. If you don’t have enough savings, the cost of treating all these diseases can become a real problem for you.
Getting critical illness cover with a single payment at the time of valid claims can give you and your family some relief in times of need. So in difficult times you need to worry.