Critical Illness cover
What would happen financially if you were diagnosed with a serious illness?
Nobody likes to think about it.
But if you were diagnosed with cancer, suffered a heart attack or stroke, or developed another serious condition, the financial consequences could extend far beyond the cost of treatment.
You may need time away from work. Your partner may need to take time off to care for you. You might want to make changes to your home, pay for private treatment, or simply give yourself and your family some financial breathing space while you concentrate on getting better.
Critical illness cover can provide a tax-free lump sum if you are diagnosed with a specified serious illness covered by your policy.
That money can be used however you need it – whether that's helping with your mortgage, replacing lost income, paying household bills or adapting your home.
At MB Mortgages, I can help you understand what critical illness cover actually provides, compare the options available and find cover that's appropriate for your circumstances.
What is critical illness cover?
Critical illness cover is designed to provide a lump-sum payment if you're diagnosed with one of the specific illnesses or medical conditions covered by your policy and the claim meets the policy's definition.
Depending on the insurer and policy, cover can include a wide range of conditions, the exact conditions covered, and the severity required to make a claim, vary between insurers.
Some policies may also provide smaller payments for less severe conditions or certain children's illnesses.
That's why I don't believe critical illness cover should simply be about finding the cheapest premium. It's about understanding what you're actually buying.
"I'm young and healthy. I don't need it yet."
This is probably one of the most common reasons people put protection off.
When you're healthy, it's easy to believe serious illness is something that happens to other people.
But that's exactly when insurance can be worth considering.
You don't buy insurance because you expect something to happen. You buy it because you don't know whether it will.
And your health can also affect the cost and availability of cover. Your age, health, family medical history, occupation and lifestyle can all influence the premium, and existing medical conditions can sometimes result in exclusions or higher premiums.
Waiting until you're diagnosed with a serious illness isn't an option – by then, it may be too late to arrange the same cover.
"It's too expensive."
Cost is a completely legitimate consideration.
Nobody wants another monthly payment, particularly when mortgage payments, energy bills, childcare and everyday living costs are already putting pressure on household finances.
But critical illness cover doesn't have to mean taking out an enormous policy.
The amount of cover can be tailored to your circumstances and budget.
For example, you might decide that the most important thing is having enough money to:
Clear some or all of your mortgage
Cover your household bills for a period of time
Replace some lost income
Pay for adaptations to your home
Give you financial flexibility while you recover
The right amount of cover isn't necessarily the maximum amount you can afford. It's the amount that would make a meaningful difference if something went wrong.
And because premiums vary according to factors such as age, health, smoking status, occupation and the amount of cover required, it's worth comparing the market rather than assuming all policies will cost the same.