Insuring yourself and your income through critical illness cover can provide the peace of mind and financial protection that you and your loved ones need in the face of unexpected health issues.
What is Critical Illness Cover?
Critical illness cover is a type of insurance policy that provides a lump sum payment in the event that you are diagnosed with a critical illness or condition. The specific illnesses and conditions covered may vary depending on the policy, but typically include serious diseases such as cancer, heart attack, and stroke. This lump sum payment can be used to cover a wide range of expenses, from medical bills to mortgage payments and other living expenses.
Why Do You Need It?
While no one likes to think about the possibility of a serious illness or condition, the reality is that it can happen to anyone at any time. According to Cancer Research UK, around 1 in 2 people in the UK, born after 1960, will be diagnosed with some form of cancer in their lifetime.[1] In addition, heart disease and stroke remain leading causes of death and disability in the UK.[2]
A critical illness diagnosis can have a significant impact not only on your health but also on your finances. You may need to take time off work to undergo treatment or recovery, which can result in a loss of income. You may also face significant medical expenses, and the cost of making necessary modifications to your home or car to accommodate your illness or disability.
Without the financial protection provided by critical illness cover, you may be forced to rely on your savings or go into debt to cover these costs, which can have a long-term impact on your financial stability and well-being.
- According to a study by Aviva, the average payout for a critical illness claim in the UK was around £67,000.[3] This money can help to cover the cost of treatment, pay off debts, and provide a financial cushion during a difficult time.
The Importance of Early Planning
When it comes to critical illness cover, early planning is key. The younger and healthier you are when you take out a policy, the lower your premiums are likely to be. In addition, having a policy in place before any health issues arise can provide the peace of mind that you and your family need to focus on your recovery without worrying about financial concerns.
Protecting Your Health
The cost of medical treatment for a critical illness can be substantial, and in many cases, this cost can escalate quickly. With critical illness cover, policyholders can receive a lump sum payment that can be used to pay for medical treatment and other related expenses.
Protecting Your Finances
A critical illness can have a significant impact on your finances, especially if you are unable to work for an extended period of time. With critical illness cover, you can receive a lump sum payment that can be used to cover your household expenses, pay your bills and support your family while you recover.
Peace of Mind
Knowing that you have critical illness cover in place can provide you with peace of mind, especially in the event that you are diagnosed with a serious illness. With this protection in place, you can focus on your recovery and know that you have financial support when you need it most.
Protecting Your Lifestyle
A critical illness can cause a significant change to your lifestyle, and the lump sum payment from a critical illness policy can help you to maintain your standard of living. You can use the money to pay for necessary adaptations to your home, car or other equipment, which can help you to continue with your normal daily activities.
Protecting Your Family
A critical illness can also have a significant impact on your family, and the financial support provided by critical illness cover can help to protect your loved ones from financial hardship.
Final Thoughts
While it can be easy to overlook the importance of insuring your health and income, the reality is that this is one of the most important types of insurance you can have. By taking out a critical illness policy, you can provide yourself and your loved ones with the financial protection and peace of mind that you may need in the face of unexpected health issues.
