Half of UK’s mortgage holders have no life cover, 80% don’t have critical illness cover
Critical illness cover, also known as critical illness insurance, is a long-term insurance policy to cover specific serious illnesses listed within a policy. Should the worst happen, it gives a tax-free ‘lump sum’ – a one-off payment, to help pay for your mortgage or rent, debts, or pay for alterations to your home such as wheelchair access should you need it, but it’s your choice how you spend it.
Critical illness insurance will pay out if you get one of the specific medical conditions or injuries listed in the policy. But be aware that not all conditions are covered and policy will also state how serious the condition must be.
Examples of critical illnesses that might be covered include:
- heart attack
- certain types and stages of cancer
- conditions such as multiple sclerosis
Most policies will also consider permanent disabilities as a result of injury or illness. It only pays out once and then the policy ends. Some policies will make a smaller payment for less severe conditions, or if one of your children has one of the specified conditions.
Every year 1m workers in the UK unexpectedly find themselves unable to work because of injury or illness, according to the ABI.
State benefits might not be enough to replace your income if something goes wrong. If you’re eligible, welfare benefits range from around £70 a week to just over £100 a week, depending on your circumstances (i.e. whether or not you have children, a certain level of savings, or if your partner works).
Critical illness cover could be considered if:
- you don’t have savings to tide you over if become seriously ill or disabled
- you don’t have an employee benefits package to cover a longer time off work due to sickness
Gervis can help you understand the best critical illness, or life cover policies for you. For more information visit our dedicated page here; http://gervis.co.uk/financial-services/critical-illness-cover/ Or contact us on 01202 471100 and email@example.com