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Is Critical Illness Insurance Important?

When talking about life cover, many people forget about critical illness cover. A life insurance policy can provide immense peace of mind for you and your loved ones, so why is critical illness insurance important? A critical illness policy will pay a tax-free lump sum if you become unable to work due to life threatening medical conditions such as breast cancer. This tax-free lump sum is often used by policy holders to recoup loss of earning, pay off the mortgage or pay for additional medical fees and treatment. Critical illness cover can be an excellent life insurance policy option for anyone who is self-employed, requires medical insurance, or is otherwise unable to access sick pay.

If you like the sound of critical illness cover but would prefer ongoing payments rather than a tax-free lump sum, income protection insurance may be worth considering. An income protection policy will pay monthly and can be claimed against as required during your policy term. Again, this type of life insurance policy is especially valuable to anyone who is self-employed and can help provide support to you and your loved ones during tough periods.

If you choose to buy critical illness cover or an income protection insurance policy, you may have some difficulty if you already suffer from pre-existing medical conditions. In many cases, people with pre-existing medical conditions are able to obtain these policies with standard terms but more severe medical conditions may require ‘exclusions’ or some premium loading. If an ‘exclusion’ is added to your life insurance policy, it means your critical illness cover or income protection will only cover you for issues not related to you pre-existing medical conditions. ‘Exclusions’ are often very strict and can affect your eligibility for certain benefits, so it is vitally important that you check your critical illness cover/income protection policy closely before agreeing to one. Generally, during any application for income protection or critical illness insurance, insurance companies will need to look at your personal and family medical history before they can underwrite you.

Overall the amount critical illness cover or an income protection policy will cost depends on the sum assured and any additional risk factors you may have such as pre-existing medical conditions. Although these policies are often forgotten in favour of a standard life insurance policy they can help policy holders through difficult and traumatic times and help you to protect your quality of life. So, is critical illness insurance important? I would say, yes. Statistically you are far more likely to need to claim against an income protection or critical illness policy than you are your life insurance policy. Especially if you are self-employed or ineligible for sick pay the level of financial protection and peace of mind afforded by a critical illness policy is invaluable.

If you have been declined for critical illness cover or income protection in the past or would simply like to learn more, Iam insured can help. Iam Insured have over 20 years’ experience helping people find critical illness cover and income protection that works for them. To speak with one our expert advisors call us now on [TELE] or send us an email [EMAIL].

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