critical illness coverOf all the concepts the easiest to understand if you get confused by insurance is life insurance, it makes sense particularly if you have a mortgage as most of us have.

However, if you check the statistics you are 5 times more likely to suffer from a critical illness such as a heart attack stroke or cancer, than you are to die. The form of insurance that will protect you from this misfortune is called critical life insurance.

Just to reassure everyone the improvement in treatments for serious illness and cancer have improved dramatically. Testicular cancer in men and breast cancer in women are now treatable so that 5 years later surviving levels are at 90% and 80% respectively. (Office of National statistics)

Critical Illness Cover

Critical illness cover provides a cash sum to tide you over during recovery.

The cost of critical life insurance is not all that great depending on your needs most people insure to the level of their mortgage and the policy pays out on a list of 30-50 different conditions. These are critical conditions so a back injury will probably not be on the policy.

Payment depends some quite specific diagnostic features and if you do not have them you will not receive a payout. Your insurance advisor should explain that they only pay out on certain conditions at a specified severity to get a payout.

Serious Illness Cover

Serious illness cover in keeping with critical illness cover is not a replacement for income in the event of a lengthy illness. The pay out for serious illness cover in keeping for critical illness cover will only occur if the illness is covered by the policy, everyone should remember that it is a lump sum not an on-going payment.

Each insurer will have its own list and these should be checked before taking out the policy but there are some common illnesses. The common illnesses should be angina, back injury and treatable cancers these will probably not be on the critical injury list.

The common illnesses are heart attacks and strokes, kidney failure, motor neurone disease and multiple sclerosis, major organ transplants, (this would include being put on a waiting list) blindness, major burns and benign brain tumours.

Choosing an insurer that covers more illnesses than its competitor may not be the answer to cover; some insures specify the condition has to be extremely serious before they consider a claim.

ALL insurers should explain the conditions exclusions and restrictions that apply to your policy. There may be other factors that affect your policy such as your medical history your job or your lifestyle. Policies vary, but will often include permanent total disablement; some cover serious illness for your children and cover if you are placed on a waiting list.