It's understandable why people don't want to spend a lot of time thinking about the consequences of becoming seriously ill, but the unfortunate reality is that many of us will have to deal with periods of being critically ill.
Critical illness insurance is designed to provide a cash lump sum if you're diagnosed with one of the illnesses covered by your policy. This money can help you to take care of bills, mortgage payments, medical treatment, or even a holiday whilst you recover and get back on your feet.
Let's take a closer look at how critical illness works, what's covered, and how you can get a contractor's critical illness policy in place.
What is critical illness insurance?
Critical illness cover, sometimes known as CIC, is a type of insurance policy that protects you against a plethora of different medical conditions. We'll take a closer look at what is and isn't covered a little later.
Simply choose how much you'd like to receive should be diagnosed with one of the listed conditions. You may opt for your mortgage amount, two years' salary or a fixed lump sum based on your budget, it's completely down to you.
You'll also need to decide how long you'd like the cover to run for. For instance, you could choose to cover yourself for the length of a mortgage, until children are financially independent of you (pigs do fly) or until retirement age. Alternatively, just pick a number of years that you feel suits your circumstances best.
What's covered by a critical illness insurance policy?
The number of critical illnesses covered by your policy will completely depend on your provider, however, they all need to cover specific definitions of heart attacks, cancers, and strokes in line with the Association of British Insurers. This helps to protect policyholders and ensure that all insurers conform to comprehensive standards.
Some critical illness providers cover more than 40 different medical conditions, giving you access to a wealth of protection against illnesses that could significantly impact your earnings and/or lifestyle.
It's important to note that a critical illness policy will only pay out the fixed sum assured if you're diagnosed with a specific illness. You won't receive any benefit if you're signed off work due to a condition that isn't covered. Instead, you'd need to take a look at income protection insurance. This can be purchased in conjunction with critical illness cover to provide a fixed lump sum as well as an income during periods of being unable to work.
How can I apply for critical illness cover?
Critical illness insurance for contractors is usually purchased with life insurance attached since the costs are the same regardless. Let us know what lump sum you'd like to receive and how long you'd like to be insured for, and we'll provide you with a personalised quotation.
Since critical illness insurance policies are so comprehensive, you'll need to answer a range of medical and lifestyle questions before your policy can begin. You may find that more focus is placed on risk factors such as hazardous pursuits and your job when compared to life insurance on its own.
For more information on critical illness cover or to get your quote, contact us today and we'll be more than happy to assist.