What is serious illness cover?
Serious illness insurance pays out a tax-free lump sum if you are diagnosed with one of the specific illnesses or disabilities that your policy covers. It is also sometimes called critical illness cover.
Serious illness cover can be purchased as standalone cover or combined with life cover or mortgage protection under the one policy.
Do I need serious illness cover?
Illness can impact our lives at any time. Insurance cover can reduce the financial impact of this. Think about serious or critical illness cover if:
• You and your family rely on your income
• You’re a single income household, or are the main breadwinner
• Government benefits wouldn’t cover your outgoings, or you’re not eligible.
How does serious illness cover work?
For the duration of your plan, you’ll pay monthly premiums. If you’re diagnosed with one of the conditions that’s covered and it meets one of the definitions, you’ll get a payout.
Can I claim if I become seriously ill?
You may or may not be able to claim for a serious illness, even if you have a serious illness policy.
You can claim the benefit on your policy only if:
• The illness you develop is one of the illnesses your policy covers;
• A medical diagnosis confirms that your illness matches the definition of that illness in your policy terms and conditions;
• You survive for a period after you are diagnosed. This period may be 7 or 14 days, depending on the policy.
You must meet all three conditions to claim your policy benefit.
What’s the difference between life insurance and serious illness cover?
Life insurance pays a lump sum to your loved ones if you die or develop a terminal illness.
With serious illness cover, if you’re diagnosed with an illness that’s covered, the payment goes to you.
What is standalone serious illness cover?
Standalone serious illness cover means that your cover is kept separate from any other life insurance policies you might have.
What is Accelerated Serious Illness Cover?
Accelerated Serious Illness Cover means that the policy will pay out if you are diagnosed with one of the listed serious illnesses under your plan or if you die within the term of the policy. It would not pay out twice unless you only receive part of the benefit. Some accelerated serious illness policies let you choose a lower level of cover for the serious illness part of the policy than for the life insurance part. It is always cheaper than standalone cover as it only makes one payment.
How much does serious illness cover cost per month?
The cost of your policy will depend on several factors such as the amount of cover you choose, how long you want the policy to run for, your age, your health status, and whether you want a single life policy or joint/dual life policy. Smokers will also pay more for cover than non-smokers.
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