Critical illness cover is an additional element offered with many life insurance policies. It pays out in the event that you are diagnosed with a serious medical condition.
Is This The Same As Medical Insurance?
No Nike Vapormax UK Sale , critical illness cover is not designed to cover medical costs. Instead it is designed to cover other costs relating from a condition, most notably a loss of earnings. This is often marketed with particular emphasis on the policyholder being able to still pay their mortgage while unable to work.
What Health Conditions Are Covered?
There is a wide range of conditions which can be covered by such policies. The vast majority will, at the least, cover cancer Women's Nike Air Max 95 Light Pink UK Sale , coronary artery bypass, heart attack, kidney failure, major organ transplant Men's Nike Air Max 95 Black UK Sale , multiple sclerosis and stroke, as well as paying out in the event of permanent disability.
However, each insurer will have restrictions and it is important to check the terms and conditions carefully. Some forms of the covered conditions will not be covered by all policies. For example, non-invasive skin cancer or angina might not be covered.
How Long Does The Cover Last For?
Policies can either run for a set time Men's Nike Air Max 95 Triple Black UK Sale , usually with a renewal option, or offer lifetime cover.
Is The Payout Immediate?
No, in most cases there will be a waiting period, usually a month Men's Nike Air Max 97 All White UK Sale , after your confirmed diagnosis. If you die during this period, the insurer will only pay out the amount for the life insurance itself. There is often a three month period after taking out a policy during which customers cannot make a claim. This is designed to stop fraudulent claims for a condition the customer already knew about before taking out the policy.
Do I Have To Take Out Critical Illness Cover Through My Life Insurance?
No, it is possible to get a standalone critical illness policy. However, this does not always work out as better value as the market for standalone policies is less competitive than the market for life insurance.
As you'd imagine Nike Air Max 97 OG Undefeated Sail White UK Sale , a standalone policy does not payout any extra amount in the event of the policyholders death. This means it is often unsuitable for people with dependants such as a spouse or children. For single people without dependants who would not benefit from life insurance, a standalone policy may be a better option.
Is Critical Illness Cover Only Bought By Individuals?
No, in some cases a business may take out cover for some staff members. With this type of cover, often known as key person cover Men's Nike Air Max 97 KPU TPU All Black UK Sale , the payout would go to the business rather than the individual. It is designed to protect against losses the business might suffer if an important employee was off work for an extended period. This could include paying the staff member during the illness (including payments above and beyond Statutory Sick Pay), recruiting a temporary replacement, or paying overtime to staff who have to cover their workload. The policy will nearly always simply pay out a lump sum with the business deciding how to use the money.
As with individual insurance, the cover will usually also pay out in the event of the covered person dying.
Businesses considering taking out such cover must remember to carefully follow laws on confidentiality regarding any medical information they may come across in the process of taking out such cover. It will usually be good practice to make sure any medical information which is gathered is not made available to whomever makes decisions about hiring or promoting staff as this will avoid accusations of discrimination.
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