Is Critical Illness Cover Worth It?
Each year, an increasing number of UK adults become either become chronically unwell or suffer a severe illness meaning they can no longer work. Although this is an extremely scary thought as none of us know what the future holds. With many adults having mortgages and rent to pay and families to feed, an increasing number of people turn to Critical Illness Cover. But is Critical Illness Cover Worth It?
Today’s guide will take a look at the many options available to you and help you with the best course of action. Preparing for the future in case you are diagnosed with a critical or terminal illness will provide stability for your families’ future.
Is Critical Illness Cover Important?
Each year, an increasing number of people are benefiting from having a long term protection policy for Critical Illness Cover Insurance to protect them financially if they cannot work. No one knows what the future may hold or predict if they may fall critically ill. However, with careful long term planning you can take steps to protect your family and yourself financially.
For the people who do fall ill with a long term medical condition or are diagnosed with a critical condition will likely be worried about being unable to work. During a time of illness, it is important to focus on the ongoing treatment and potential recovery. Rather than potentially worrying about how to pay bills and look after your family. Which could make treatment time and recovery times increase or make a condition worse.
Why Planning For The Future Is Important
Many people in the UK are not in a position to have enough savings to protect the shortfall of income during a prolonged period of sickness. A recent study estimates that over 10 million households in the UK do not have any savings at all. Therefore, if you are re not in a position to be able to comfortably afford your household bills without an income, Critical Illness Cover Insurance could be worth having.
It is also worth noting that each insurance provider will offer different products at varying monthly premiums. This will depend on your individual circumstances and can also impact the amount you are insured for. Almost all Critical Illness Cover providers offer guaranteed premiums for the length of the policy. Which will allow you to keep the same level of Insurance cover at the same cost. Which is very important for people who have to budget monthly and will help as you enter your older years when a Critical Illness Cover policy will be more expensive.
Is Critical Illness Cover Worth Getting For Children?
Although Children’s Critical Illness Cover is a contentious issue, as no parent wants their child to become ill. Many insurers do offer protection policies for children which can provide peace of mind if you have to take time away from work to care for your children. If a child does become ill or suffer with a long term Critical Illness a lump sum could go towards their treatment, if needed.
It is important to note that a claim payment you will receive can be lower. This is because many Children Critical Illness policies are offered at no extra monthly cost to your own protection cover.
Because each provider offers different levels of cover at very different monthly costs. It is extremely important to search all of the providers in the UK. At Life Insurance Cover, we search all of the providers available. By using an FCA regulated broker. You can search all of the providers quickly and find the best protection for you and your family.
How Many Times Can I Claim For Critical Illness?
One of the many factors to consider when purchasing a Critical Illness Cover policy is that most providers will only make a claim payment once. Therefore, if you have a combined Life and Critical Cover policy type and make a claim against the Critical Illness part of the policy. It is likely that the same policy may not be make a further payment after you pass away.
However, this is not the case with all policy types and a number of insurance providers do offer different levels of cover. This is another important reason to use a FCA regulated broker like Life Insurance Cover. By using a broker who can identify the best policy to fit your individual circumstances and the different policy limitations. Will help to protect your family for the future.
Important Factors To Consider
Having a Critical Illness policy in place does offer a level of assurance that, if the worst were to happen, you will be financially protected. However, because each policy is created on an individual basis. There are factors that you should consider when taking out a protection policy.
The Monthly Premium Cost
Obtaining and being accepted by an insurer for a Critical Illness Cover policy including the monthly cost of your premiums. Will depend on key factors including how healthy you are and the lifestyle that you lead.
Usually, the older we become and the susceptibility to illness increases, the higher the monthly premiums. This is due to most providers concluding that you will be more likely to make a claim. However, because many providers offer guaranteed premiums prices which means that your monthly premiums will remain the same. It is more beneficial to obtain protection when you are younger, fitter and healthier.
You Will Not Get Your Money Back If You Never Make A Claim
If you are fortunate enough to never need to claim against your policy for Critical Illness and outlive the term of your policy. It is important to remember that the money you have paid in monthly premiums is usually non-refundable and you will not be able to claim it back.
You Cannot Claim If You Stop Paying Your Premiums
If you are unable to continue monthly premium payments or choose to stop making your insurance payments. You will not be able claim against your policy. This also applies if you have paid for critical insurance cover for a substantial length of time. You will only be protected if you continually make monthly premium payments and adhere to the policy terms and conditions.
Are There Alternative Products Available?
It may be the case that you decide that critical illness insurance is not necessary for you. It is important to note that there are alternatives that you could choose from:
Home Insurance Additional Products
By discussing the options available with an FCA regulated broker who can search all of the available policy options can help. At Life Insurance Cover we can help you to find out more about the alternative options that could be better suited to your circumstances.
Compare Protection Policies With Life Insurance Cover
Taking out any long term protection policy should always provide a safety net for the future of your family and peace of mind for you. It is also important to compare the market of providers, by using our free, no obligation quote service. We can help you find the right cover at the right monthly premium cost for your circumstances.
Our specialist team of advisors have years of experience and access all of the Insurance Providers in the UK. By searching all of the providers, Life Insurance Cover can will find the best policy available. Based on value for money and the range of cover available for you.