Critical Illness Cover
Could you and your family cope financially if you were not become critically ill and could not work? It’s not a nice question to consider, but it’s an important consideration. If you think you and your loved ones would struggle to pay the mortgage or meet the cost of other household bills, you should consider critical illness insurance.
What is critical illness cover?
Critical Illness Cover is a form of insurance which pays out a tax-free lump sum in the event that you are diagnosed with a specified illness or medical condition during the term of the policy.
Critical Illness Cover is not the same as life insurance. Critical Illness Cover will pay out a lump sum if you are diagnosed with a specific illness that is named in the policy. Life insurance pays out if you die during the term of the policy. It is possible to have a single policy that pays out either on death or on diagnosis of a life threatening illness, whichever event happens first.
The policy pays out a tax-free lump sum if you are diagnosed with one of a pre-defined list of serious health conditions within the policy term.
For example, if you take out a 25-year policy with a sum insured of £150,000 and you are diagnosed with a critical illness such as M.S. at any point during that period, you would be able to claim the £150,000.
You can spend the money how you wish, so you could use it to clear your mortgage or any debts, pay for medical bills or to adapt your home to your particular needs. In other words, it can offer much needed financial help in a time of crisis.
You could also invest some or all of the lump sum to generate an income for your family to live on.
Cover for children
Many insurers also offer children’s critical illness cover at no extra charge, though the pay-out is usually limited to between £10,000 and £25,000.
List of conditions
With critical illness cover, you should always read the small print carefully so that you understand exactly what the policy covers.
Single pay out
Most policies pay out only once. However, a number of insurers will make a small payment if you are diagnosed with a less severe illness. The policy will then continue and you could, in theory, lodge a further claim if you were diagnosed with a critical condition at a later stage, within the policy term.
Bringing costs down
Premiums for critical illness cover depend largely on the likelihood of a claim. So, the older you are and the more unhealthy you are, the higher the premium.
By adopting a healthier lifestyle, for example losing weight or quitting smoking, this may help to reduce your monthly premium.
Kind Words from our Clients
I have always been impressed by his market knowledge , and desire to find solutions for retirement/investments that are best suited to our personal situation.
In addition,David helped to progress a critical illness claim after a fall at home 5 years ago ,resulting in premature retirement, when the company concerned was less than helpful initially.
His visits are always at a mutually suitable time and date , and David is a friendly and welcome visitor.
His investment suggestions and portfolio changes changes have proven to be good choices to date, and we look forward to David’s advice for years to come..
Dr A M
Dr M G
We feel that we can contact David and his office staff at anytime.
W. & M. R
When circumstances required prioritisation of attention and energy to other areas of our lives, it was reassuring to know he was continuing to monitor and review. He quickly responded to any questions we had and promptly dealt with matters which required attention.
The prospect of challenges ahead is less daunting, knowing that we have his continued support and interest in ensuring positive outcomes in our financial planning.
Dr B. B.
Miss A. M.
I would recommend him to anyone requiring impartial financial advice.
Mr W. O.
Mr J. S.
My association with David has become a working relationship where I am happy to share all my private and personal information, in return for the best financial advice available. His advice to date has proved to be sound and I am very pleased with the monies that my investments have accrued over this period.
Dealing with David also makes me relaxed, knowing that he understands my lifestyle, he provides me with individual attention by considering the fine details of my financial position, he considers my future requirements and he always emphasises the possible attached risks.
Honesty and integrity are important factors to me and Vance Financial Management are a company that I highly recommend.