What Does UK Critical Illness Insurance Cover?

Critical Illness Insurance Won’t Cover…

First of all, unlike Life Insurance, Critical Illness policies do not pay out for a fatal accident or death of any kind. So, Critical Illness Insurance won’t provide security for your loved ones when you are gone but, they are still essential for providing long term financial security. A critical illness insurance policy could provide valuable financial support when you are unable to work, as long as the illness in question is covered.

Core Conditions Critical Illness Insurance will Cover…

The Association of British Insurers stipulates that all Critical Illness policies must provide a basic level of cover for seven stated ‘Core Conditions’.

Core Conditions are currently defined as:
– Cancer
– Heart Attack
– Coronary Artery Bypass
– Kidney Failure
– Major Organ Transplant
– Multiple Sclerosis
– Stroke

However, what is not generically specified is the level of condition you have to suffer from to be able to claim.

For example, when it comes to cancer, diagnosis alone does not always enable you to make a full claim. In some situations the illness must be considered advanced before it will pay out. However, there are alternative options whereby you are able to make a reduced claim for less severe symptoms. Just like if you dent the bumper of your car, your insurance will not pay out the full value of the vehicle but, issue a proportional payment equivalent to the damage that has actually been done.

Critical Insurance Additional Illnesses

Depending on the type of policy you get, further conditions will also be covered under your policy. It isn’t unusual for up to 30 varying illnesses to be covered under critical illness protection. However, the type of conditions covered will vary from policy to policy.

Ensure that the insurance you select covers illnesses that are appropriate to you. In the same way that you don’t want to take up cover that doesn’t include the right illnesses, you also want to make sure you are not paying for protection against conditions that are not relevant to your lifestyle.

Critical Illness Insurance Exclusions

In addition to the extra protection you see included in the insurance cover, you will also find that certain policies will exclude named conditions.

This could include illnesses that you have suffered from in the past or may also incorporate hereditary conditions which exist within your extended family. Make sure you check the small print before taking up any policy and if you would like pre-existing conditions included in your policy, then stipulate this to the insurer when applying for critical illness protection.

This type of policy provides a fantastic opportunity to create financial stability for yourself and your family should you become very ill. It can provide the money you need to repay outstanding debts or adapt to your new way of life. It can even be used as income to compensate for the loss of salary.

However you choose to use the payout from critical illness insurance, such a policy can provide vital comfort and security to help you recuperate fuller and quicker. Just make sure you have the protection you need so that your insurance can help you when you need it most.

See Also:

• More About Critical Illness Insurance
• Car Insurance Savings That Most Drivers Overlook
• 2 Types of Mortgage Insurance
• Term vs. Whole Life Insurance – What Should You Choose?.

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Article provided by Marcus Allerton on behalf of http://www.criticalillnessinsurance.org.uk who offer an online whole of market critical illness insurance comparison service backed by friendly, professional, independent advice.

Image courtesy of Sura Nualpradid / FreeDigitalPhotos.net