Introduction to Critical Illness Cover - this type of insurance is a relatively new form of insurance, having been only marketed properly within the last decade.  Depending on whose insurance product you are looking at, you may find that this cover comes in various disguises with different names. Whatever the marketing name, the insurance is designed with the same objective in mind.  In simple terms it is designed to provide a lump sum in the unfortunate event of a serious illness being diagnosed. It is in addition to any other type of Life Insurance that will of course continue to pay out in the event of death.  It can be purchased as a stand alone insurance contract or part of a package of other insurances.

What is Typically Covered? - The type of insurance protection on offer will of course vary from insurer to insurer, you will probably find that the following conditions are covered by most insurance companies offering this type of contract;  cancer, heart attack, stroke, coronary artery disease, kidney failure, paralysis, a major organ transplant, heart valve surgery, multiple sclerosis, blindness in both eyes, total and permanent disability, loss of hearing, stage one Hodgkin’s disease, terminal illness, AIDS but only via infected blood transfusion.

Most insurers will consider the above to be standard cover but terms do vary one to another, it is always best to check individual wordings if you are concerned about a particular cover.  Critical Illness policies make a cash payment when the medical condition is diagnosed as opposed to paying out when death occurs as under a life insurance policy or in stages as under an Accident or Sickness policy. The cash is intended for you to pay off your debts, settle any outstanding mortgage payments and perhaps to provide the funds to modify the home, perhaps specialist equipment such a s a stair lift etc will have to be purchased. It may also be necessary to employ a home help.  It makes quite grim reading but 1 in 4 men currently aged between 20 & 40 will suffer some form of critical illness before they reach the age of 65. Regrettably 95% of all claims are in respect of cancer. For females the number is one in five

Here is the fact- You are 10 times more likely to suffer from a serious illness than die before you reach the age of 65.  Hopefully as time passes medical advances will continue and death may not be the ultimate result of serious illness. However it must be stressed that you do not need to be dying to receive payment under this form of insurance policy.

Some insurance companies offer this type of insurance polity as part of a mortgage deal and if you are taking out a new mortgage then it is certainly something to consider. It may also be possible to couple this insurance with others and this may help to keep the cost down. It may also be possible to obtain “ Terminal Illness only Insurance” and this may also keep the cost down.  The cost of the cover available is dependent on age and of course other factors, it is a good idea to check around what is available on the market and if you are in any doubt as to the products on offer, it is best to seek professional advice.