There is an insurance policy for most things in life. It’s there to protect us against what might happen. In the case of critical illness insurance, we are insuring our health. Nobody wants to think that they will be diagnosed with a serious illness or disease, but these things can and do happen. Here is a quick guide to critical illness insurance that covers everything you need to know before taking out a policy.

What is Critical Illness Insurance?

Critical illness insurance will pay out a lump sum if you receive a diagnosis of a condition covered by your insurance policy. Critical illness is available as a standalone policy, or it can be combined with life insurance. Many people buy a combined critical illness/life insurance policy from reputable companies such as Applescott Insurance to protect their mortgage. This pays off the mortgage and ensures that dependents won’t be homeless if the insured person is unable to work or dies due to a serious illness.

What is Covered?

There is some degree of variance between different policies, but all policies cover cancer, strokes, and heart attacks. Other critical health conditions may be covered, but you should check the details of your policy, as some types of cancer, broken bones, and pregnancy-related conditions may be excluded. The policy pays out after you have been stricken for a specified number of days.

If your condition is not serious or has a high cure rate, you may not be covered. For example, stage-one non-invasive cancer will probably be excluded, whereas stage-four ovarian cancer will likely be covered.

Always check the T&Cs before you buy a policy, as cheaper policies exclude many common illnesses and serious health conditions.

Do You Need Critical Illness Insurance?

Only you can answer this question, but if you have dependents, insurance is always a good buy – assuming you can afford the premiums, of course. The younger you are, the less likely you are to fall sick, get cancer, or end up paralysed because of a stroke. Think about how you could pay the bills if you were diagnosed with a life-limiting illness. If you are paying a mortgage and you have no significant savings, life would be very tough. You could end up losing your home if you couldn’t keep up with the mortgage payments, but with a critical illness insurance policy in place, some of the stress would be removed.

Paying the Premiums

Age is the primary factor in the cost of premiums. The older you are, the more you will have to pay for protection. However, lifestyle factors also play a part in helping insurers to decide what your premiums should be. So, an obese smoker with high blood pressure is more at risk than a fit, healthy, non-smoker and would, therefore, be charged more for the same level of cover.

If you are not sure about whether critical illness insurance is right for you, it is best to speak to an independent advisor to find out what your premiums would be and whether you are eligible for a policy.

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