It’s not a topic any of us want to dwell on, but life-changing illnesses can and do happen and when they do, the financial impact can be devastating.
According to World Cancer Research Fund, 1 in 2 people in the UK will be diagnosed with cancer in their lifetime. Critical illness cover provides a tax-free lump sum if you’re diagnosed with a serious illness listed in the policy, helping you cover expenses while focusing on recovery.
How Does it Work?
If you’re diagnosed with a covered condition, such as cancer, heart attack or stroke, your insurer pays out a lump sum. This money can be used for:
- Mortgage repayments or rent
- Private treatment or recovery costs
- Replacing lost income
- Supporting your family financially
Most policies cover a range of serious illnesses, though the exact conditions will vary between providers. Common inclusions are major cancers, coronary artery bypass, multiple sclerosis, kidney failure and organ transplants. Some policies may also include partial payouts for less severe conditions or early-stage diagnoses.
Please note: It’s important to note that plans may not offer all the definitions of a critical illness which vary between providers. It does not pay out on death. Terms and conditions apply.
Who Should Consider It?
- Homeowners and mortgage holders
- Parents or anyone with financial dependants
- Self-employed individuals with no sick pay safety net
- Anyone concerned about the long-term impact of serious illness on their financial wellbeing
Many people assume that life insurance is enough, but life cover only pays out when you die. Critical illness cover pays out when you survive but need financial support to recover. That distinction is crucial.
How Much Does it Cost?
The cost of critical illness cover depends on factors like your age, health, lifestyle and the level of cover you choose. It can be added to a life insurance policy or purchased as a standalone product. For many its more affordable than they think, especially when weighed against the cost of lost income, medical care, or long-term recovery.
At Resolve Financial Solutions, we work with leading UK insurers to find protection policies that suit your personal circumstances and budget. We will walk you through your options and explain everything very clearly.
Please get in touch for a personalised protection review and take a step towards having peace of mind.