Critical Illness
Very soon after the diagnosis of a critical illness, thoughts turn to the inevitable questions: -
- How will we cope?
- How will we manage if I'm going to be off for so long?
A Critical Illness policy povides a lump sum payment if you are diagnosed with a specific serious illness. This could pay off your mortgage, help with your bills or help pay for treatment.
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Critical Illness
Critical Illness Policies are often bought in conjunction with Life Assurance or Mortgage Protection Cover. It can, however be bought as a stand-alone policy paying out in the event of being diagnosed with a critical illness such as some forms of cancer and heart attack, Alzheimer's, Multiple Sclerosis, major organ transplant, HIV/AIDS etc. The Association of British Insurers has issued a Statement of Best Practice to provide greater undertsanding and clarity of the common illnesses covered.
A cash lump sum (the sum assured), or an on-going income maybe paid on diagnosis of an illness listed in the insurance policy.
Most insurers will require that the policyholder must survive a minimum number of days (usually 28 - 30) from when the illness was first diagnosed (unless the prognosis is for a shorter terminal illness period).
And just one warning: -
Answer the medical questions on any application form with full details of ANY, AND ALL, previous health problems. The criticism insurance companies face over policies not paying out on claims could, so very often be avoided by Clients providing more accurate (even more truthful) answers to the questions (they call it 'utmost good faith'!!!).
