Critical Illness Cover (CIC) is a type of health insurance that pays out, generally a tax-free lump sum, if you are diagnosed with an illness or disability that is deemed to be life-threatening or critical under the terms of the policy.
If you are diagnosed with a life-threatening illness, as long as you have the right cover, you will not need to worry about the mortgage.
Critical illness cover is the only silver lining to what could be a devastating diagnosis.
A 35 year-old man is five times more likely to claim under a critical illness policy than under a life insurance policy before the age of 60.
Critical illness cover is likely to cost more than life insurance because you are more likely to make a claim.
Let Mosaic Health plough through the small print and exclusions for you to ensure you’ve a water-tight policy.
As with all health insurance, CIC is by no means an essential type of insurance. However, it can provide real peace of mind that you will receive financial help should you ever fall seriously ill, thus relieving you of one less worry. CIC is usually sold alongside products that represent a significant financial commitment such as a mortgage or business loan.
Peace of Mind
Although most people seriously consider life insurance when taking out a mortgage or once they start a family, it is far more likely that they will become seriously ill rather than die before repaying their mortgage or before their dependants no longer rely upon them.
Indeed, research carried out by Bupa revealed that a 35 year-old man is more than five times likely to make a claim under a critical illness policy than under a life insurance policy over a 25-year period.
CIC (which should usually be combined with life cover unless you have no dependants) is designed to pay out a lump sum on diagnosis of a life-threatening illness provided you survive, generally for 14 days. By including the life element, if you were to die suddenly from e.g. a heart attack or a brain tumour and not survive, then the combined policy would still pay out.
Again, all the insurers differ in which conditions they cover and also in the exclusions they may impose. There are many variations of premiums which can be paid eg: as guaranteed, reviewable, renewable, with or without indexation etc. Some policies cover children as part of the insurance.
The cheapest is not not necessarily the best
But, beware, the cheapest CIC policy will not necessarily be the best. There are so many permutations of cover you can opt for so, as with all insurance, it will be in your interest to take specialist advice.
Mosaic Health can advise you as to whether CIC is the right policy for you. If it is, we can guide you through the minefield to help you find the provider and product that are most appropriate for you.