In this blog article, I will discuss the question Do I need Critical Illness Cover?
I know so many people who insure their pets, their mobile phones but they do not insure themselves. They do not stop to think what would happen if something happened to them.
Whether or not you need critical illness cover, will depend on a number of factors. The first thing to consider is what you would like to happen should you be diagnosed with a serious illness?
What would you like to happen should you be diagnosed with a serious illness?
Would you like to pay off your mortgage? Or to have some breathing space so you don’t need to worry about work? To make some home improvements? Or go on a round the world trip?
Would you need extra money to pay for travel expenses to hospitals or for increased energy bills being at home in the day?
If your partner was diagnosed, would you be able to afford to take time off work to spend with them?
Would you like the peace of mind to know that if you had a serious illness, you would receive some money to spend however you like?
If you answered yes to any of these questions, then maybe you should take consider taking out some critical illness cover.
Is it only the main earner who needs Critical Illness cover?
Not necessarily. If the lower earner also provides childcare, how would the cost of providing this be covered if they are too ill to care for the children? In addition to this, the main bread winner may wish to take time out of work to spend with their partner which could incur lost earnings.
“Critical Illness cover plans never pay-out”
Some people believe that critical illness cover plans do not pay out. This is untrue. Insurance Companies do not want to have the bad press associated with non-payment of claims. In 2015 for example, Royal London paid 93% of their Critical Illness cover claims. They didn’t pay 6% as they didn’t meet with the definition and 1% due to misrepresentation of the life assured.
How much cover do I need?
This depends upon what you would want to happen if diagnosed with a critical illness and will also depend upon your budget. As mentioned in my previous blog “What is Critical Illness Cover?” if you are thinking about taking out cover, it is worth speaking to a Financial Adviser to make sure you get the right cover for you.
Should I review my existing Critical Illness Cover?
If you have had your Critical Illness Cover for a number of years, it is worth reviewing your policy. This is because with medical advancements the treatment of certain conditions have changed and are less intrusive. On older style plans, some conditions will have payment triggers defined by certain medical procedures which are no longer practiced and therefore, the policy may not pay out.
For a no obligation initial complimentary meeting contact me if you would like to look into taking out Critical Illness Cover or if you would like to review your existing plans.