Critical Illness Insurance
Do I need it?

31 March 2021

Often mistaken for Life Insurance, Critical Illness Insurance will pay out if you get one of the specific medical conditions or injuries listed within the policy. Though the insurance covers many categories of illnesses not all variants are included and are usually limited to the most serious conditions. Common illnesses covered include types of cancer, heart attack and stroke. The policy usually ends upon receipt of payment. 

There is usually a waiting period of around three months after taking out a critical illness policy in which you cannot make a claim. 

The cost of this type of insurance varies. It is based on a number of factors including a person’s age, if they are a smoker, their weight, current health and family medical history, their job, if they have any dangerous hobbies and the amount of cover, they wish to have. 

Though most people feel that having life insurance will mean that their family will be covered for expenses in the event of their premature passing, suffering from a critical illness or a long-term disability as a result of one can be just as financially devastating. 

These types of conditions usually mean that you will be unable to continue working and will require support to cover related expenses, bills and any modifications that might need to be made to your home. 

According to the US National Health Council

Generally incurable and ongoing, chronic diseases affect approximately 133 million Americans, representing more than 40% of the total population of this country. By 2020, that number is projected to grow to an estimated 157 million, with 81 million having multiple conditions

(chronic disease is used to describe a disease or condition lasting more than three months) 

A global piece of research by Cancer Research UK found that 17 million cases of cancer were diagnosed in 2018. With these statistics in mind, it would seem that Critical Illness Insurance is worthwhile in these unfortunate situations.

Ultimately Critical Illness cover could be right for you if you would be unable to cover your outgoings if you become seriously ill or disabled and can no longer work. It can provide you and your family with a safety net during a very difficult time and may allow you to recover and adapt your life with optimism for the future. 

It can be upsetting and difficult to think about you or a loved one experiencing a critical condition but having insurance in place can really help.