Serious medical problems can affect many people throughout their lives, and no one can predict what the future will hold. As many people, particularly those of an older age, may have a number of dependents or responsibilities it can pay to think about putting a safety net in place. Critical illness cover is one of these options, and may be more effective than relying on the off chance of investments paying off or of savings being adequate in the event that someone is seriously ill in later life.
This is a kind of personal insurance which will payout in the event somebody suffers a serious medical condition, which is not necessarily fatal. Normally the things which are covered include cancer, stroke, a heart attack or more or multiple sclerosis. This is different to a health insurance policy which simply pays for any bills which are run up during private treatment of a problem.
Critical illness cover is also not the same as some payment protection deals which provide somebody with cash support who can't work because of ill health. Essentially a critical illness plan will pay a lump sum of cash upon the diagnosis of a problem which can be spent just how the policyholder wants.
Often people will use the money to pay for some of the essential costs which may become a problem including the care of children or simply to replace the whole of someone's income. One of the main benefits of this kind insurance is that there is normally no condition put on how the money is spent-the policyholder who gets the payout can either choose to give some of it to somebody else, or keep all of it themselves.
People who take out life insurance will often include a critical illness element in the policy. It's a common attachment to many deals, and while life insurance will payout a lump sum in the event of someone's death, the critical illness part will payout in the event somebody faces a serious medical problem.
Of course not every single medical condition will result in a payout and this is something to bear in mind. Insurance companies will often supply an exact definition or list of what is protected on the policy. If somebody is unsure about what is protected, they should ask and can request a definition in writing. One important thing to bear in mind is that pre-existing medical conditions may not be covered by a policy.
This normally refers to medical problems which somebody was suffering with before they bought the insurance, including asthma or perhaps diabetes. Should they face a worsening of these illnesses in future they may not be able to claim on the policy. Alternatively, the insurance company may allow somebody to specify conditions which are pre-existing and get cover for them for an extra fee.
Critical illness cover can't solve future health problems but it can ease financial pressure at a very difficult time and could fill gaps which may otherwise appear and affect a policyholder's loved ones. Premiums depend on the amount of payout and the circumstances covered - but could be quite reasonable depending on the deal and how you get it.
