Critical illness cover.
Critical illness cover is a type of insurance designed to pay a lump sum if the insured person is diagnosed with, or undergoes treatment for, a specified serious medical condition that meets the policy’s definition.
CRITICAL ILLNESS COVER
What is critical illness cover?
Examples of conditions that may be covered include certain cancers, heart attacks and strokes.
However, not every cancer, heart condition, stroke or other illness will qualify. The definitions, severity requirements, exclusions and conditions vary between insurers and policies.
CRITICAL ILLNESS COVER
How it could help
A serious illness can affect many aspects of everyday life, including employment, family responsibilities and household finances. If a valid claim is accepted, a critical illness payment could potentially help with:
- Mortgage repayments or reducing mortgage debt.
- Household expenses during recovery.
- Adjustments to a home.
- Additional care or support costs.
- Reducing financial pressure while adapting to changed circumstances.
For example, someone recovering from a serious medical condition may need to reduce their working hours or take time away from employment.
A critical illness policy could provide a financial lump sum following a qualifying claim, allowing them greater flexibility in managing financial commitments.
CRITICAL ILLNESS COVER
Important considerations
Critical illness cover does not pay out for every illness or medical diagnosis.
The condition must meet the insurer’s specific policy definition, and some policies include survival periods, exclusions or other restrictions.
Some policies also offer additional or partial payments for certain conditions, although these features are not universal.
A successful claim may end the cover or reduce the remaining benefit, depending on the policy structure.
Important information about protection insurance
Protection policies are subject to eligibility, underwriting, policy terms, conditions and exclusions. The benefits available, premiums payable and circumstances in which a claim may be accepted vary between providers and products.
Failure to maintain required premiums may result in the loss of cover. Claims are not guaranteed and must meet the conditions of the relevant policy.
Our advisers can explain the relevant features, benefits, limitations and costs to help you consider suitable protection arrangements.
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