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Fancy having your name up in lights on LOF50? Here's your chance, simply write something that interests you and we'll post for the world to see.Critical Illness Cover
Critical illness cover is a relatively new form of life insurance. First invented in the 80s, it has since become a popular additional option with many life insurance policies, and, with modern medicine improving people's ability to live with certain conditions for a long period, critical illness cover is becoming more and more widespread.
The theory behind critical illness cover is simple, in return for an additional premium on your life insurance policy; your provider will pay out in the event of you suffering one of any number of agreed severe and potentially life threatening illnesses. The list of illnesses varies from company to company, but the majority of policies offer coverage for many types of cancer, in addition to long term illnesses such as Alzheimer's, HIV, MS, many forms of organ failure, and many forms of sensory disablement.
The policy can be structured to pay out either a lump sum, or to pay out a certain amount every month for a certain term. Such protection can be invalid in the event of such an illness being diagnosed, particularly if there are expensive medical costs and if the illness prevents you from being able to continue working.
Critical illness cover is an extremely reliable form of insurance. The Association of British Insurers has taken steps in recent years to standardise the process for the diagnosis of a critical illness so there is an extremely high payout rate, higher than just about any other form of insurance in the UK.
Additionally, the average age of a claimant for critical illness cover in 2008 was 49, with 75% of female claimants being under the age of fifty. The average payout was above £50,000 per claim, and some insurance providers, such as Legal & General, will cover your children for critical illness as part of your policy.
Critical illness cover can not prevent the trauma for you or your family of being diagnosed with a serious illness, but it can offer significant financial assistance for the duration of your illness, in addition to the payout from your main life insurance policy should the worst happen. It is not a particularly expensive form of insurance and is definitely worth considering, particularly if your family has specific medical history. Nothing can replace a loved one, but to have assistance to face the challenges of an illness can help. Look at Legal & General's website for guidance on their critical illness cover, and see if a policy might serve as a financial crutch at any point.