When you get a life insurance quote, bear in mind that critical-illness cover is usually available at very little extra cost, and sometimes no cost at all. Critical-illness cover on top of your life insurance pays out a lump sum should you be diagnosed within a period of time with particular critical illnesses. When you get your life-insurance quote, note that critical-illness cover is usually available only with relevant life insurance cover.
If it pays out, you can use the lump sum to adapt your home if need be or get help with medical costs. If you are diagnosed with a critical illness these include cancer, coronary artery bypass surgery, heart attack, kidney failure and other serious conditions your payout under your policy will be tax-free. You should not, however, confuse critical-illness cover with private insurance, which is used to pay for medical treatment in the private sector. Life insurance with critical illness cover is also different from income protection cover. This kicks in once you have been unable to work for a particular length of time, perhaps six months, and pays you a monthly sum.
When you get a life insurance quote and ask about critical illness, remember that there are many different serious illnesses and not every policy will cover the same illnesses, although all policies cover cancer, stroke and heart attack. Be careful to get a quote for the right life insurance with critical-illness cover for your needs. It would be unimaginable to take a life insurance policy with critical illness cover, and be left high and dry at a difficult time. To achieve this, it's always a good idea to speak to an independent advisor who has no axe to grind.
In 2003, new rules came in that changed the conditions under which you can claim on critical-illness policies. The ABI sets out rules that mean that all providers will not cover illnesses like non invasive skin cancer or tumours that have yet to invade the organ or tissue.
Conditions around heart attacks and the this type of insurance have also been tightened. For a claim to be successful, there must be evidence of chest pain, or changes registering on the ECG. More moderate conditions like angina are no longer covered by critical-illness insurance.
You should note that, as well as the insurer's core list of illnesses, they will have a secondary list that includes illnesses they believe are serious enough to pay out on. For instance, a minor heart operation may not be classed as a qualifying illness by every provider. HIV and AIDS is a common exclusion from this cover if it is a result of drug abuse. Not following the advice of doctors when recovering from critical illness can also invalidate your cover. Critical-illness cover is handy if you have family dependants. But, if you're single, it's arguably more vital than life insurance. it could repay your mortgage balance meaning you will have no mortgage payment to make
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