What is Critical Illness Cover?
Critical illness cover is a type of life insurance that pays out a tax-free lump sum if you are diagnosed with a critical illness as specified by your policy. These policies, typically, cover around 50-60 conditions. The highest percentage of claims relate to cancer, heart attack, stroke and Multiple Sclerosis.
Depending on the amount of sum assured, this payment could be used to:
- Pay off a mortgage and/or debts
- Provide a “financial buffer” to help replace any lost income
- Provide funds to make necessary alterations to your home which may be required post treatment.
- Pay for the costs of care and treatment, including recuperation aids
Anyone can be diagnosed with a critical condition and it can have a huge impact on daily life, for example, preventing you from working.
- Would you have enough savings to cover your outgoings if you were unable to work?
- Would you want to work if suffering from or, recovering from a critical illness?
- Would state benefits cover your income? The likelihood is they wouldn’t
- Would covering your outstanding mortgage loan be one less worry?
Here at Pure Protect Bristol, we aim to take the financial worry away from you and your family whilst you concentrate on recuperating.
These plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.
Plans may not cover all the definitions of a critical illness. The definitions vary between product providers and will be described in the key features and policy documents if you go ahead with a plan.