Critical illness insurance is designed to ease the financial pressures by paying a tax-free lump sum if you become seriously ill or totally disabled. You must normally survive at least a specified period after becoming critically ill, before the policy will pay out.
Originally known as 'dread disease cover', critical illness insurance pays benefits on the diagnosis of certain specified critical illnesses. The range of diseases covered has increased to more than 30, though contracts differ from one company to another.
As set down by the Association of British insurers – ABI, there are seven core conditions which are covered by all insurance policies, these are:
- Cancer,
- Coronary artery bypass,
- Heart attack,
- Kidney failure,
- Major organ transplant,
- Multiple sclerosis and
- Stroke
In addition to the above, Critical illness insurance policy will also pay out if you are permanently disabled as a result of injury or illness.
The number and type of illnesses beyond these core conditions will depend on the individual policy so it’s crucial to read the terms and conditions carefully and know exactly what you are covered for prior to signing up. These are the areas where an Airborne Adviser can bring the wealth of knowledge and experience and help you choose the most suitable policy for you.
To ‘successfully’ claim against a critical illness policy your condition will have to meet some grim criteria, which will also be listed in the terms and conditions.
They may state for example that blindness should be ‘permanent and irreversible’, cancerexcludes ‘advanced stages’ and that Parkinson’s disease should be ‘contracted before the age of 60’
For more information please contact one of our advisers who will be more than happy to discuss any aspect in more detail.