Critical Illness

Critical illness cover originated in South Africa as a policy and came to the UK in the late 1990s. It is a policy that has been on quite a journey with the advancement in medical science and survival rates improving for serious illnesses. 

One thing we hope you understand once you have read this page is that not all critical illness policies are the same so just sourcing the cheapest is unlikely to be the best policy for you and your loved ones.

The aim of a critical illness policy is to pay out a lump sum of money in the event of you being diagnosed with a serious illness. You can then use this money to repay a debt such as a mortgage, make changes to your lifestyle or just ease the financial pressures at a very traumatic time. Without such pressures you are more likely to make a full recovery.

Each policy will have a list of illnesses that are covered and a set definition for each illness. Example: “Loss of limbs” is typically a listed illness. Some may define this as “loss of two or more limbs above the main joints”. Another provider may say “loss of one limb above a main joint”

For a provider to call a product a critical illness policy they need to at least offer the Association of British Insurers (ABI) minimum standard. Many providers offer enhanced conditions and definitions providing you with greater insurance and an increased chance to claim.

 Since the launch of critical illness some previously serious conditions such as “carcinoma in situ of the breast” or “low grade prostate cancer” now have very high recovery rates so they are no longer qualify as a critical illness for a full pay out. Some of the better insurers recognise that this is still a traumatic and worrying time for you and so they provide “partial pay-outs” to provide some financial support at such a time. Some providers cover as many as twenty different illnesses for partial pay-out that should not be life threatening but still very worrying if you are the patient.

If you are a family with children, then look for policies that offer cover for children if they suffer a serious illness. This is designed to provide some financial support to you as parent if your child is seriously ill so you can take time out with your child to aid them in their recovery. Each provider is different as some offer none, some offer a limited list of conditions and some have enhanced or an extended list of conditions. The amount your child will be covered for is usually a percentage of the cover you are asking for with a maximum amount capping the benefit paid. This can be doubled if both parents have separate policies rather than having a joint policy so advice should be sought to ensure your maximising benefits with the budget you have to work with.

Finally, providers are all seeking to offer greater value than their competitors, so some providers do this by offering fringe benefits within their policy. Examples of this are:

• Health apps you can access for health advise

• Virtual GP services so you can speak to a GP from your living room rather than visiting your local GP

• Access to specialist nurses to help you or a loved one through the most serious illnesses

• Grief counselling

• Stress management help including career and legal advice

• Second opinion services to get an expert in the field of your illness to give a second opinion on your diagnosis which could lead to a different prognosis or course of treatment

As you can see there is a lot to think about when selecting a critical illness policy. Our team of advisers will consider all these factors when we make a recommendation helping you find the best value for your budget to protect you and your loved ones.

If you already have a critical illness policy we subscribe to a software package that enables us to compare older polices to the current products being offered so if you want to review and see how good your plan is give us a call we are happy to provide a report for you.

If your looking for a new policy or a review contact us for a free initial consultation so we can learn more about you and help you with some thoughts and ideas.