Critical illness Cover

This covers serious illnesses listed within a policy. All insurance providers are different but to give an example it would include illness such as heart attack, certain types and stages of cancer, motor neurons disease, stroke.

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The policy pays out a tax-free, one-off payment if you suffer one of the specified critical illnesses. This lump sum can help pay your mortgage, rent, debts or even alternations to your home, such as wheelchair access, should you need it.

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Some policies make a smaller payment for less severe conditions or if one of your children becomes ill with one of the specified conditions.

 

You maybe thinking that you can reply on state benefits to help should the above happen. It is very unlikely that state benefits will be enough to replace your income if you can’t work due to long-term sickness or accident. You maybe put in a situation whereby you and your family are not longer able to pay your mortgage and live in your home.

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The same as life insurance, critical illness cover comes in many forms.

 

Term assurance, increasing term assurance, decreasing term assurance, family income benefit.