Critical Illness Cover

This type of insurance was originally developed in South Africa and has been around in this country for over 20 years. Unlike straightforward life assurance plans where the idea is to protect others if you die, Critical Illness insurance or Serious Illness cover is designed to help you if you don’t die. The first plans were fairly basic and as with any product, we have seen great strides in development over the years.

More than one in three of us is likely to suffer a cancer at some stage in our lives (source: Cancer Research UK). In 2006, nearly one in ten deaths was due to a Stroke and nearly one in six was due to Coronary Heart Disease (source: British Heart Foundation). However, survival rates are getting better all the time and it is because of this that Critical Illness insurance has become so important.

The plans provide a cash payout if you suffer from one of a list of named conditions and this originally led to some problems because there was a wide difference in definitions between companies. Happily these have generally now been standardised.

There are a number of types of plan. Some are for a limited length of time and some are whole life plans. There may also be different types of cover available from companies. Some may offer “budget” plans that protect you against the main types of serious illness and others of a more comprehensive nature may include protection in the event of a whole raft of different conditions.

Apart from these basic differences in what is and what is not covered, we have now seen developments by companies towards a new concept in care cover, where the amount of any claim depends on the severity of the condition. This may be able to more specifically target cover when it is most needed than traditional plans. Plans today are very different to the early days so even if you already have a plan, it is well worth reviewing it with one of our advisers.

As you can see, it isn’t just a case of one type of plan that is available. There is a range of types of plan on the market and trying to make sense of what does what, when, and how can be complicated. The most important thing to remember is that the right plan for you must be based around your own individual circumstances, and our Independent Advisers will be happy to discuss your needs and make impartial recommendations to ensure that your financial future is protected adequately.

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