In today’s world, it is imperative to safeguard ourselves and our loved ones from unexpected health challenges. Critical illness cover is a valuable insurance policy that provides financial protection and peace of mind if you suffer from serious illness. However, there are few aspects of critical illness cover that needs to be understood properly. In this descriptive blog, we will aim to explain 5 Factors.
1. Lets understand first, what critical illness cover is?
Critical illness cover offers extensive protection against a range of life-altering medical conditions. It ensures that policyholders receive a lump sum pay-out upon diagnosis, enabling them to cover medical expenses, recuperate, seek specialized treatments, or maintain financial stability during their recovery. Whatever the case may be, it is designed to be there when it is needed the most. It can lessen the financial burden and the impact on an individual or a household. Lets go into 5 most talked about factors:
2. Why is Critical illness cover expensive & how many illnesses it covers?
Critical illness cover is High risk & highly claimable with age and serious illnesses need detailed medical care. The likelihood of a policyholder making a claim for a critical illness is relatively higher than for other types of insurance, which increases the risk for insurers. Critical illness cover is quiet comprehensive in nature and covers wide ranging illness but not limited to:
- Cancer (various types & Grades)
- Heart attack
- Stroke
- Organ transplant
- Kidney failure
- Multiple sclerosis
- Parkinson’s disease
- Alzheimer’s disease
There are many more illnesses, which are usually covered, and they vary from one insurer to another. In some cases the list of illnesses covered could increase more than 100. Statistical data shows in UK that certain age groups would be more susceptible type of critical illnesses. Although, with the medical advances you survive through the diagnosis but can take couple of years to recover or the possibility of being completely unable to go back to work.
3. Can critical illnesses cover be taken to cover the Mortgage?
Yes.
Mortgage is one of the most important commitment we make in our lives as it provides us and our loved ones a home.
Critical illness cover can be added with your Life Insurance or stand alone to cover the outstanding mortgage for the years left to pay. You can also take it on level basis, which means the benefits of your policy will stay the same till the end of the term chosen, either to cover the mortgage or retirement. Upon diagnoses, you get lump sum paid which can be used to pay the mortgage entirely or partly.
4. Can People with Pre-Existing Conditions Obtain Critical Illness Cover?
People with pre-existing conditions may be able to get critical illness cover, although the policy terms may change depending on the individual’s specific circumstances. Insurance providers typically evaluate pre-existing conditions on a case-by-case basis, taking into account factors such as the nature and severity of the condition, current health status, and treatment history.
In some cases, insurers may impose certain exclusions or premium loadings to account for the increased risk associated with pre-existing conditions. This means that the coverage for the specific pre-existing condition may be excluded, or the premium amount may be slightly higher than for individuals without pre-existing conditions. It is important to disclose all relevant information about pre-existing conditions during the application process to ensure transparency and avoid any potential claim disputes in the future. You health disclosures need to be made. It is important to take your policy in good health as it is only your good health, which qualifies you on standards and lowered rates.
To conclude, Critical illness cover is a valuable form of insurance that give financial security and peace of mind when needed the most. Despite being relatively expensive due to the comprehensive nature of the coverage and potential risks involved, it provides much needed safety net in the event of a severe illness diagnosis. Critical illness cover policies are highly flexible to suit individual needs. Policyholders have the flexibility to choose the sum insured, ensuring the coverage aligns with their specific requirements. You can add your children and there are other additional benefits offered by different insurers. For example AIG and LV offers 24/7 Virtual GP with support care. You have other providers like Aviva, Royal London and Zurich providing you with additional support system.