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What is Critical illness insurance?
It is a UK Life insurance policy that pays out a lump sum of cash should you be diagnosed with or even die from a Critical illness.
Why do I need Critical illness insurance?
Recent BUPA statistics now show that one in every four of us between the ages of 30 and 60 will suffer some sort of critical illness or another.
One in every three of us will suffer some form of Cancer and here in the UK it is estimated that someone has a heart attack every two minutes.
If you find yourself being diagnosed with a specified critical illness then this insurance policy will pay you a tax free lump sum of money when you desperately need it the most.
as suffering from a critical illness can force you out of work which can result in a devastating loss of income.
With this money you can continue to pay your Mortgage / rent and any other financial commitments you may have such as finance agreements, loans etc and it can also be used to make any required modifications to your home such as wheel chair ramps, stair lift etc.
What are the different types of Critical Illness Cover?
There are three main types which are:
Level Term Critical illness insurance
This policy retains the same value throughout it’s whole lifetime and is popular with people who have an interest only Mortgage and would look to pay of their mortgage with the lump sum of cash provided.
Increasing Critical illness insurance
This is where your insurance provider will increase your level of cover each year to protect your policy from the effects of inflation and help it retain its true value.
Decreasing Critical illness insurance
This is opposite to increasing in that the value of your insurance policy decreases and is usually in line with your Mortgage. This type of critical illness insurance policy is suitable for capitol and repayment mortgages and should not be used with an interest only mortgage.
What illnesses are covered by Critical Illness Insurance?
This will vary dependent upon each insurance provider. Some will cover you for more illnesses than others but all UK insurance companies must cover you for what is known as ABI conditions which stands for Association of British Insurers.
Most life insurance companies choose to cover for more illnesses than this but again this will depend upon the company.
Here is a general list of the ABI conditions which all UK life insurance companies must cover you for with your Critical illness insurance.
Alzhemiers, Aorta graft surgery, Benign brain tumor, Blindness, Cancer (advanced cancers), Coma, coronary artery bypass grafts, Deafness, Heart attack, Heart valve replacement, Kidney failure, Loss of hands or feet, Loss of speech, Major organ transplant, Motor neurone disease, Multiple sclerosis, Paralysis of limbs, Parkinsons disease, Stroke, Terminal illness, Third degree burns and Traumatic head injury.
What should I do now?
Simple, just click the button to fill in our quick, single page online quotation form for critical illness insurance and we will do the rest.
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