Critical Illness Cover

At Freedom Advice, we want to help you prepare for unexpected events. Critical illness cover is a type of insurance that provides financial security if you or a loved one is diagnosed with a serious illness or injury.

What is Critical Illness Cover?

Critical illness cover is a policy that can be added to your life insurance, which provides a lump sum payment if you are diagnosed with a specific illness. This payment is tax-free and can be used to cover expenses such as health-related costs, loss of income, or adjustments to your home.

How Does Critical Illness Cover Work?

To receive a payout from your critical illness cover, you must be diagnosed with a specific illness listed in your policy. Critical illness cover can be added to your life insurance for an additional fee. If you keep up with your policy payments, you will be covered if you are diagnosed with a critical illness.

What Illnesses are Covered by Critical Illness Insurance?

The types of illnesses covered by critical illness insurance vary depending on the policy. Generally, critical illness insurance covers illnesses such as heart attacks, strokes, non-terminal cancer, multiple sclerosis (MS), Parkinson’s, organ transplants, severe head injuries, and physical disabilities from an injury.

What is Not Covered by Critical Illness Insurance?

It is important to note that critical illness insurance does not cover death related to the illness. If you want coverage for both critical illness and death, you may want to consider a life insurance policy with critical illness cover.

Who Needs Critical Illness Cover?

Anyone can be affected by a critical illness, so it is important to consider how you would cover expenses if you were diagnosed with a serious illness and could not work. If you are worried about the financial impact of a critical illness, critical illness cover may be a good option for you.

Types of Critical Illness Insurance

There are two types of critical illness insurance:

  • Critical illness insurance only: This policy pays out a lump sum if you are diagnosed with a serious illness listed in the policy. This is usually bought separately from life insurance.
  • Critical illness insurance and life cover combined: This policy provides a lump sum if you are diagnosed with a critical illness or if you die. However, if you claim for a critical illness, your life insurance will end.

How Much is Critical Illness Cover?

The cost of critical illness cover depends on various factors such as the amount of cover you are looking for, age, health, lifestyle, pre-existing medical conditions, current personal circumstances, and how long you want the policy in place for.

Qualifying for Critical Illness Insurance

To be eligible for critical illness cover, you must be a UK resident and over 18 years old. Your lifestyle and medical history can affect the level of cover you can get and how much you pay for it.

Other Financial Protection Services

If you decide that critical illness cover is not for you, we can advise you on other financial protection services such as income protection insurance and life insurance.

At Freedom Advice, our team of experts can help you find the most suitable policy for your needs. Contact us today to schedule a consultation with one of our advisors.