Critical Life Insurance & Critical Illness Cover

Critical life insurance is commonly known as critical illness insurance. Often people refer to critical life insurance for critical illness cover with a life insurance element. In other words critical life insurance would pay a lump sum on death, but in addition would also cover less fatal critical illnesses, which whilst serious may not necessarily be life threatening.

Serious illness, such as cancer and heart attack, now affects one-in-four women and one-in-five men before retirement age.  Critical life insurance is designed to ease the financial pressures if you become seriously ill or totally disabled. You must normally survive at least one month after diagnosis of a critically illness, before the critical illness insurance element will pay out. However, if it is combined with a life insurance policy, it will also pay out on critical illness or death.

Critical Illness cover pays out a tax free cash benefit on diagnosis of a certain specified critical illness. The actual definitions of a critical illness can differ between critical life insurance companies but they all cover  at least 7 core conditions. These are heart attack cancer, kidney failure coronary artery bypass, stroke, heart attack, major organ transplant, and multiple sclerosis. They will also pay out if the insured client becomes permanently disabled as a result of injury or illness.

It is important when considering critical life insurance to appreciate that definitions of a defined critical illness policy can be quite tight. For example, whilst cancer may be covered, certain cancers may not be covered such as skin cancer or non-advanced prostate cancer. There are also restrictions on heart attack and payment will depend on the severity and other factors.  Not all illnesses are covered. Some of the most common exclusions include HIV/Aids, self-inflicted injury, injury caused by criminal acts and dug misuse.

Most critical life insurance providers allow you to take out cover between the ages of 17 and 70. Some critical life insurance companies now allow Applicants up to the age of 85. The critical life insurance policy can be taken out for any period. Often people take out the policy for the same period as their mortgage term, or until the last child reaches 21 or until their retirement. The choice is yours and we can provide quotes for the appropriate duration once we have assessed your needs and requirements. Policies vary widely in the illnesses they cover and the cheapest plan may not always be the most suitable if it limits the level of cover. We will be able to take you through the quotes for each policy once we have determined your needs and requirements.

Upon taking out the policy, there is normally a 3 month period whereby no claim can be made. Prior to obtaining critical life insurance you will need to be medically underwritten. You will be asked if you or members of your family have been diagnosed with illnesses in the past. If so, your policy may be rated. This will mean you will pay higher premiums. The policy may also exclude  certain conditions if the critical life insurance company deems the risk of cover to be too high.

A medical may also be required before the insurance is accepted.

If you need any assistance why not speak to one of our Mortgage Advisers by calling 0845 3 630 430 or Enquire Online.