What is it?
A policy that pays out a lump sum on diagnosis of a serious condition, such as heart disease or cancer.
Why do you need it?
Advances in medical science mean that more people are now surviving serious illness than in previous years. While this is good news, many people are faced with the realisation that they may not be able to return to work, or indeed, wish to.
Critical Illness is, in many ways, similar to Life Insurance with the difference being the insured is still alive.
Things to bear in mind
Critical Illness plans are built around the most common serious conditions, such as:
- Coronary artery by-pass surgery
- Heart Attack*
- Kidney Failure
- Major Organ transplant
- Multiple Sclerosis
Some policies may include other illnesses such as Alzheimer’s and Parkinson’s disease. Or may include a list of less common conditions, such as blindness or coma.
Critical illness is often bought as an optional extra on a life insurance contract.
*Not all types of heart attacks are covered.
*Not all types of cancer are covered.