You go to the doctor because you feel a bit under the weather and are given news you hardly expected.
Those headaches and sinus infections are common illnesses and symptoms of something much more serious.
Suddenly, your entire life and that of your loved ones is about to change.
This is a scenario none of us wants to face, but it is a situation that can be mitigated with critical illness cover.
If a family is not prepared for something like this, the sudden and horrible news could make it necessary to sell off assets to help pay for household bills, mortgages, car payments, and other expenses.
Instead of being faced with a situation such as this, talk to a Claybrooke insurance specialist to find out how critical care can provide for your family if news such as this is ever realised.
Most of the time, a critical illness comes as a surprise. Finding out about cancer or having a heart attack or stroke is not something that happens with warning.
You seem fine for one second, and then the next, your life changes forever. Wouldn’t a lump sum payment help alleviate your financial concerns and offer peace of mind to both you and your family?
Click To Compare QuotesCommon Serious Illnesses Covered
Cover typically includes a range of severe conditions. Common illnesses covered are cancer, heart attacks, stroke, and major organ transplants.
Cancer coverage usually focuses on life-threatening cancers, while heart attack and stroke coverage apply to incidents with lasting impact.
Policies may vary, so it’s key to review terms. Some might also include conditions like multiple sclerosis or coronary artery bypass surgery.
Consult with your provider to ensure you understand what’s included.
How Does Critical Care Illness Insurance Work?
Unlike a standard insurance plan, critical illness cover pays out once a diagnosis of a critical illness is made.
Beneficiaries are not forced to wait until the covered person passes away to collect on the policy.
- If the insured were to experience something such as a heart attack, need bypass surgery, or be diagnosed with cancer, the policy would be eligible for a benefits payout.
- In addition to these conditions, there are also generally secondary conditions that will allow the insured to cash in the policy.
For example, a permanent disability typically qualifies the policy. Because all policies are different or may include different exemptions, it is recommended that you fully discuss the plan with one of our specialists before deciding on the policy.
One clause most policies feature is that the insured must live for two weeks after the official diagnosis is made.
Once that period passes, the benefits are paid out in a lump sum and can be used at the policyholder’s discretion for expenses.
Click To Compare QuotesThis enables the insured to stay focused on their treatment and not have to worry about things such as mortgage payments or the family’s financial security.
Factors influencing premiums include gender, age, current health, and smoking status. Of course, the length and amount of coverage will also affect the premium.
Married couples or partners may also subscribe to a joint policy or policies that cover their children.
Factors Affecting Policy Terms
In addition to the usual factors, your occupation and family medical history can shape policy terms.
- High-risk jobs or hobbies might lead to higher premiums due to increased risk. A family history of specific illnesses might also lead to exclusions or premium adjustments.
- Lifestyle choices beyond smoking, such as alcohol consumption or exercise habits, can further affect the policy.
Discuss any concerns with your provider to gain clarity on how these factors impact your cover.
Individuals who prefer non-traditional treatments often use these policies to secure secondary care.
Holistic medicine is becoming increasingly popular. A lump sum payment will permit patients who cannot afford this type of care on their own to receive regular medical care as well as their preferred method of alternative treatments.
What Type of Coverage Do I Need?
Like most types of insurance, various levels of cover can be secured. The more options included, the greater the scope of coverage.
For instance, Total and Permanent Disability (TPD) will be included in the more comprehensive plans. TPD offers a payout when someone becomes disabled and can no longer work.
Click To Compare QuotesWhen shopping for these types of policies, it is extremely important to verify exactly what is covered by the insurance, especially if other types of cover are already included in the policy. Our team of insurance experts can discuss this.
- In most cases, critical illness is added to an existing or new life insurance policy, be it term or whole of life. It is not the norm for this policy to be secured independently.
- However, there are sometimes clauses when this type of cover is added that only one of the options is paid out.
In other words, the insured can choose to receive the critical illness payout at the time of diagnosis or wait until their beneficiaries collect a death benefit.
Due to the varying types of coverage, it is essential to review all the policy’s terms and conditions with one of our insurance experts before making a final decision.
You will want to make sure everything is fully explained before finalising your insurance cover.
Comparing Specific Illness Cover with Long-Term Care Insurance
Long-term care insurance is another option to consider. Unlike specific illness cover, which provides a lump sum upon diagnosis, long-term care insurance offers ongoing payments for personal or medical care.
It’s particularly beneficial for chronic conditions requiring extended support. Understanding the differences, such as the coverage duration and specific benefits, helps you choose the right type of financial protection for your needs.
Is It Recommended to Have Critical Illness Cover?
This is often a budgetary decision, but everyone can benefit from critical illness cover. Critical illness news is often delivered completely unexpectedly.
That being said, financial problems can follow if proper precautions have not been taken. When a family suddenly loses the primary income earner, the aftereffects can be emotionally and financially devastating.
Critical illness cover offers peace of mind in these dire situations. However, as stated above, be sure to discuss the terms and conditions to ensure that you or your beneficiaries will receive the benefits planned.
With the right cover, you will be providing financial security for your family during the most trying days of your illness, as well as the days after your passing.
Tax Implications of Lump Sum Payments
Lump sum payments received from a specific illness policy are generally tax-free in the UK.
This means recipients can use the full amount for medical expenses, lifestyle adjustments, or as financial support without worrying about tax deductions.
It’s important to confirm this with your policy provider to ensure you understand any specific conditions.
What Alternatives Are There to Critical Illness Coverage?
The most popular alternative to critical illness coverage is income protection insurance. Unlike critical care, which pays out in one lump sum, this type of cover will provide a continuous payout during the period when you are unable to work.
This type of coverage is intended for individuals who eventually plan to return to work.
Again, there are specific terms and conditions for this type of cover, so the policy should be discussed in detail with one of our insurance experts before finalising.
Alternative Insurance Options Beyond Income Protection
Beyond income protection, there are additional insurance options like disability insurance. This type provides ongoing financial support if you’re unable to work due to injury or illness.
Life insurance riders can also be considered to complement your existing cover, adding layers of protection against uncertainties life might present.
Nobody wants to find out they have an illness that will alter their life forever. Moreover, they will not want to put their family into financial hardship during their treatments.
To provide peace of mind to you and your family, explore the options available at Claybrooke Life Insurance.
We can provide you with both life insurance as well as additional coverage, such as critical illness, that will allow your family to remain financially secure in the event of something happening to you.