There are lots of areas of our lives that require us to seek insurance protection – either for our own sake or for that of any financial dependents we may have. One of the most important types of insurance cover available is critical illness insurance. As the name indicates this is intended to provide financial cover in the wake of the claimant receiving a diagnosis of a critical health condition.
However, while it is advisable to consider taking out such cover, there are terms and conditions which affect most critical illness policies that you should be aware of before deciding which one to opt for.
To begin with, like any other insurance policy your critical illness one will only cover you in the event of your being diagnosed with an illness which is included in the terms and conditions of the policy – meaning you must read these carefully before choosing one, as they can vary depending on the provider.
There is nothing worse than contracting a serious medical condition only to find that the insurance policy you have does not cover you for it. The next thing to consider is the type of policy you want, as critical illness insurance comes in a number of different formats.
There is the option of taking out a term or family critical illness policy, which is intended to provide the claimant with a lump sum for the protection of family dependents in the wake of serious illness. This type of policy is also suitable as protection against interest only mortgages, because the payout assured by the policy remains at a fixed level.
Another option is to go for combined critical illness and life insurance, which has the benefit of offering pretty comprehensive protection and often allows the policy holder to get the life insurance at a good discount, or entirely free.
Alternatively there is the choice of either single or joint critical illness cover, with joint cover being utilised both by spouses and by business partners. This guarantees financial protection to the partner of the person diagnosed, who would also be affected by the illness.