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Critical Illness Cover

Critical illness cover is a type of insurance policy designed to provide financial support if you're diagnosed with a serious medical condition listed in the policy. It pays out a lump sum of money upon diagnosis of conditions such as cancer, heart attack, or stroke, helping to cover expenses like medical treatments, mortgage payments, or everyday living costs. This coverage ensures that you and your family have financial stability during challenging times, allowing you to focus on recovery without the added stress of financial burdens.

How does critical illness insurance work?

 

Critical illness insurance provides financial protection if you suffer a serious illness. It's commonly taken out alongside life insurance, particularly when applying for a mortgage. This ensures that if you become seriously ill or pass away, your family has the security of knowing they can cover some or all of the mortgage.

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This type of insurance provides financial support if you're diagnosed with a severe medical condition listed in your policy. Here’s how it typically works:

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  • Policy Purchase: You start by purchasing a critical illness insurance policy from an insurance provider. The policy will outline the specific illnesses covered, the terms, and the premium costs. Premiums are usually paid monthly or annually.

  • Diagnosis: If you are diagnosed with a critical illness that is covered by your policy, you can file a claim with your insurance provider. You will need to provide medical evidence and documentation to support your claim.

  • Claims Process: The insurance company will review your claim, and the medical documentation provided. This process can vary in length depending on the complexity of the claim and the insurance provider’s procedures.

  • Pay-out: Once your claim is approved, you will receive a lump sum payment. This payout amount is pre-determined based on the terms of your policy. The money is tax-free and can be used at your discretion.

  • Use of Funds: The lump sum payment can be used for various purposes, such as:

    • Covering medical expenses not covered by health insurance.

    • Paying off your mortgage or other debts.

    • Covering daily living expenses if you are unable to work.

    • Funding necessary home modifications or specialized care.

  • Policy End: The policy may end after a claim is paid for a critical illness, or it may continue with coverage for other illnesses, depending on the terms of your policy. Some policies also offer partial pay-outs for less severe conditions.

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The policy is designed to provide financial relief during a challenging time, allowing you to focus on your recovery and reducing the financial burden on you and your family.

How much critical illness cover do you need?

 

Determining the right amount of critical illness cover depends on several factors specific to your individual circumstances. Some of the key considerations to help you decide would include:

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  • Financial Commitments

  • Income Replacement

  • Medical Cost

  • Dependents

  • Existing Cover/s

  • Lifestyle

  • Future Plans

How much does critical illness cover cost?

 

The cost of critical illness cover varies based on multiple factors, including:

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  • Age

  • Health

  • Occupation

  • Lifestyle

  • Hobbies

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For example, if you're older, smoke, or have health issues, your premiums will be higher. However, if you're younger and in good health, you'll pay lower premiums.

 

The premiums are usually paid monthly. If you don't make a claim during the policy term, there won't be a payout when the cover ends. Most premiums remain the same throughout the policy unless you make changes to your coverage.

What is covered by a critical illness policy?

 

Critical illness policies typically cover a broad range of serious conditions, such as:

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  • Cancer

  • Heart attacks

  • Strokes

  • Blindness

  • Deafness

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Most policies include at least 40 different illnesses, but more comprehensive plans may include additional conditions like loss of limbs, Parkinson's Disease, or Alzheimer's.

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Ensure you always review the policy terms to understand precisely what your policy covers. The majority of protection providers also include coverage to your children at no extra cost.

How can Knightwood Mortgages help?

 

Knightwood Mortgages provides expert advice on critical illness cover, offering tailored solutions to ensure you have comprehensive financial protection. We understand the importance of safeguarding your mortgage and overall financial well-being, helping you select a policy that best meets your needs in the event of a serious illness. Contact us to discuss critical illness policies by emailing services@knightwoodmortgages.co.uk or calling 03301 336045.

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03301 336045

12 High Street, Lyndhurst, SO43 7BD

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Knightwood Mortgages is an Appointed Representative of Mortgage Intelligence which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only. Knightwood Mortgage Ltd Registered address: 12 High Street, Lyndhurst, SO43 7BD, England, United Kingdom under number 13517392. 

We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service (https://www.financialombudsman.org.uk/consumer/complaints.htm).

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