Critical Illness insurance provides a lump sum payment on diagnosis of one of the critical illnesses listed with that insurer, such as stroke, heart attack or cancer. The lump sum can help you and your family to cover health-related costs, monthly expenses or lost income, whilst you recover.
Our Protection & Healthcare Consultant Stacey explains Critical Illness insurance and why it might be worthwhile considering in 2024.
How much will it cost?
The cost of your cover depends on a variety of things, including the length of time that you want your policy in place for and the amount of cover that you want to have in place. You should consider establishing a level of cover that would support your family’s needs, such as mortgage payments or childcare fees, whilst you were unwell.
You can choose to take out level cover, which means that the lump sum you choose will remain the same throughout the policy term. This can help to cover any costs incurred with regard to your health, as well as other financial commitments and general outgoings.
You could alternatively choose decreasing cover, meaning that the lump sum you would receive in the event of a claim decreases over time. This option can be useful to cover things like mortgage payments, as the outstanding amount of your mortgage decreases over time.
But do I really need it?
Like all personal covers, the need for Critical Illness insurance depends on your personal circumstances. Some key things to consider include the amount of savings that you have… is it enough to live on if you were to become critically ill?
Are you self-employed? In this situation, you need to think about what would happen, should you get a critical illness. With no employer, you won’t get sick pay. However, investing in insurance could give you a lump sum to keep you ticking over, whilst you focus on getting better.
Questions? Contact Stacey today to discuss if Critical Illness cover is right for you.