Here’s our handy guide to understanding the importance of critical illness insurance — what it is, how it works and how it varies from other types of insurances.
What is critical illness insurance?
Critical illness cover is insurance that pays you a lump sum if you are diagnosed with a particular illness.
Critical illness provides financial support for you and your family while dealing with your diagnosis, allowing you to concentrate on getting better without worrying about how you will be able to pay the bills.
How does critical illness cover differ from life insurance?
As we stated earlier, critical illness cover helps support you and your loved ones financially if you’ve been diagnosed with a particular illness listed in your policy.
When you are diagnosed with a critical illness covered by your policy, you will receive a lump sum payment, which could help financially with bills/mortgage payments should you be unable to work.
Critical illness insurance doesn’t payout if you pass away. That is where life insurance comes in.
In most cases, life insurance only pays out if you pass away during the policy term. Taking out life insurance can act as a financial safety net to support your family in the event of your death.
How much cover do you need?
Policies can differ in terms of which illness they cover, and this all depends on which insurer you choose. It’s good to speak to a protection specialist in Sheffield, as they can advise you on which policy goes well with your circumstances.
Critical illness insurance is a lot more expensive than life cover because you are more likely to make a claim.
That said, ensure you disclose any underlying health problems when taking the policy to avoid the risk of your claim being denied.
Our Critical Illness Insurance advice service
We aim to provide equal opportunity to all our customers when taking insurance out through ourselves.
Here at Sheffieldmoneyman, we offer all of our customers a free, no-obligation protection review, which involves us looking at any existing policies you have in place and assessing their suitability.
From this, we will look for critical illness, income protection and other mortgage protection insurance products that will meet your needs, and we will try and personalise this to your budget.
Date Last Edited: September 15, 2023
