Critical illness protection is one of the most common forms of insurance in the country. Helping you and your loved ones when you need it most, it’s often taken out for peace of mind rather than due to any underlying health issues.
But is critical illness protection really worth it? Let’s explore what critical illness cover is, what a policy usually includes, and whether or not it’s important in 2023.
What is critical illness protection?
Critical illness protection is a form of life insurance that covers you if you’re diagnosed with a serious illness or disability.
Unlike life insurance, it has nothing to do with leaving money behind for loved ones should you pass. Instead, it’s about helping you financially should you be unable to work due to circumstances relating to your health.
In this case, a tax-free amount will be paid out that can be used in any way that suits you and your family. Commonly, the pay-out helps pay for medical care or to cover lost income as a result of illness.
To give you an idea of the numbers, the typical critical illness claim amount paid by insurers in 2022 was £66,296.
What does critical illness protection include?
The kinds of illnesses covered by a critical illness policy vary, but generally include the following:
- Heart attacks
- Organ transplants
- Strokes
- Loss of limbs
- Cancer
- Parkinson’s disease
- Coronary bypasses
- Brain tumours
- Multiple sclerosis
Cancer accounts for 81% of female claims and 44% of male claims, according to Critical Illness, and it’s the most common critical illness claim in the UK.
Critical illness protection covers all of the above and more, primarily due to the high costs associated with treatments and care. It can also cover costs that relate to the illness but not directly, such as transportation, mortgage payments, and child care.
A range of factors affect how much a premium will cost, from the age and gender of the person being insured to their family medical history and general health.
Is critical illness insurance important?
The costs of unexpected illness could ruin a family financially, never mind an individual, so it’s almost always worth it once you take it out. If you don’t have a large amount of savings or if you just want peace of mind should the unexpected occur, critical illness insurance can be a massive help.
It provides additional support that would be highly welcomed in the case of poor health, and it could make an awful time that bit more bearable for yourself and the ones you love.
Of course, there’s the chance that nothing happens (which would be great) and you’ve paid out a premium for a large amount of time. However, as the old saying goes: “hope for the best but prepare for the worst”, which couldn’t be truer than when considering critical illness cover.
Summary
So, critical illness protection could play a key part in your life in a worst-case health scenario. Helping ease the load financially so you can live as close to a normal life as possible, it could be the best decision you ever make.
As well as taking out an individual policy, lots of employers offer critical illness protection as an employee benefit to provide peace of mind to staff for the future.
At Cedar House Financial, we can help you apply for critical illness protection, as well as all other major forms of insurance whether you’re an individual or a business in the UK.
Find out more about our protection services and get in touch to speak about your options.