Critical illness insurance

Critical illness insurance is a one-off, lump-sum payment that is paid out if you suffer a critical illness or injury, as spelt out in your policy. After the payout, the policy is closed. The policy isn’t linked to your earnings and you can insure for however much you wish. Typical claims include cancer, strokes and heart attacks. You can take out the cover on a level term basis or a decreasing term basis.  A decreasing term critical illness policy is normally taken out to run alongside a decreasing term life policy to fully protect a mortgage. Critical illness policies can be confusing and vary enormously in what illnesses they do and don’t cover and even the severity of the condition.

I hope this helps to explain some of the different types of insurance policies available. As you can see, insurance can be complicated and it is really important that you get the right cover for your exact needs and circumstances. Often your individual needs won’t be in the ‘one-size-fits-all’ policies that comparison websites offer, which is why it is important to get the right advice when taking out insurance policies. For advice on any insurance or mortgage needs that you might have, please contact me for a free, no obligation discussion, on 07767 692653.