Critical Illness Insurance
A critical illness can cause as much 'money worry' as death:
Life insurance pays out if you die. If you become critically ill, but do not actually die, your life insurance will not pay out. Critical illness cover is designed to pay out a lump sum if you suffer a critical illness, for example, a heart attack, cancer, or stroke.
It can be taken out for any reason, however, it is most commonly taken out to cover a mortgage or other loan, to ensure that the debt is repaid in the event of critical illness. (It could perhaps be argued that having your debts paid off if you are critically ill, is itself, an aid to recovery.)
If a claim is paid out on a critical illness policy, and in the event that the insured person subsequently makes a recovery to full health, they keep the money.
Critical illness insurance may have inclusive life cover and total and permanent disablement cover.
Different insurance firms' cover varies widely, and the cover evolves over time, so the cover should not be selected on price alone. We offer expert advice on sourcing the best critical illness insurance.
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