Do you need critical illness insurance?
It’s not easy thinking about what might happen if you became seriously ill, and no one wants to believe it could ever happen to them. However, planning for the worst could significantly reduce the financial strain on you and your loved ones if the unthinkable did happen. If you’re wondering whether you need critical illness insurance, we look at how this type of cover works, along with the benefits.
Over the past few years, the number of critical illness claims has risen, and the value of individual claims reached a record £1.2 billion. Cancer was the most common reason for people making a claim and the average payout per claim in 2023 was £67,267. Therefore, people across the UK are directly benefiting from having a critical illness policy.
What is critical illness insurance?
Critical illness cover protects you against certain illnesses by paying out a lump sum benefit. The diagnosed critical illness must be listed under the policy, so it’s vital that you understand exactly what conditions are covered.
According to the Association of British Insurers, critical illness insurance must include cover for cancer, heart attack and stroke. Apart from these conditions, the specific illnesses covered can vary depending on the insurance company. Also, if you have a pre-existing medical condition, you should use a qualified insurance adviser to find you a policy that suits your needs.
How does this cover help?
How would you cope financially if you were unable to work due to a serious illness? Do you have enough savings to pay your household bills? Even without dependents, critical illness cover is strongly recommended as a means of providing support if you become seriously ill.
Studies found that a cancer diagnosis costs patients in the UK an average of £891 each per month in addition to their usual outgoings. Typically, this includes the loss of income, the cost of travelling to and from appointments, or buying new clothes and wigs.
With critical illness cover in place, you would receive a tax-free lump sum if you were diagnosed with cancer. This can help to alleviate some of the stress and financial burden, so you can focus on your health and your recovery.
Find critical illness insurance
At Bubble Finance Hub, our insurance advisers can help to ensure you have the right level of critical illness cover in place. We will explain how this type of policy works, along with any terms and conditions that might affect you or your partner. This may include discussing your medical history and other circumstances to ensure you have an adequate level of cover.
The cost of not having a critical illness insurance could mean that you’re not able to support your family financially if you were to become ill. Our team will find the right critical illness policy for you and your family at a cost you’re happy with.
If you need critical illness insurance, get in touch to book an appointment.
As with all insurance policies, conditions and exclusions will apply.
Thank you for reading our blog, Do you need critical illness insurance?
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