There are plenty of reasons why life insurance could make sense. You may already know how it could benefit you. Yet, there may be another type of cover that’s worth considering along with your life insurance policy. Critical illness cover is something that could make a big difference to you and your loved ones. Choosing to get this cover alongside your life insurance can offer added peace of mind for your family.
It’s worth exploring why it could make sense for you to consider it. In this article, we’ll look at some of the benefits of getting this cover with life insurance while at the same time exploring what critical illness cover is.
What is Critical Illness Cover?
To start off with let’s look at what exactly is critical illness cover. It is a type of insurance that protects against serious or life-threatening illness. If you’re wondering what type of illness that covers, this will depend on the insurer. However, there are a few common conditions which are covered such as heart attacks, strokes and some types of cancer provided that they are of a certain severity. It differs from regular life insurance in that life insurance won’t payout in the instance of a critical illness unless it is a terminal illness. Critical illness cover will payout when the person insured is diagnosed with one of the illnesses mentioned above.
With Choozi, you can get life insurance or life insurance with critical illness cover added on. The good news is that the application process is relatively straightforward. All we will do is ask you a few extra questions.
What is Life and Critical Illness cover?
This type of cover is a combination of life insurance and critical illness cover. It means that you have financial support in place if you were to suffer from a critical illness, or if you were to pass away suddenly. If you’re diagnosed with an insured medical condition during the term of your policy, you’ll receive a lump sum to help cover medical expenses such as hospital bills. If you were to die during your term, your loved ones will receive a lump sum to help them with things like funeral expenses, household bills and other debts. With this type of cover, it only pays out once for whichever event happens first, at which point cover ends.
The benefits of getting Critical Illness cover with Life Insurance
As mentioned already, life insurance may not pay out with a critical illness. This means that if you get a critical illness that will have you in the hospital for a long time, there could potentially be no cover.
If your family lost your income as a result of a critical illness, do you think they would be able to pay the bills? The hard truth is that even if you get an illness, household bills are still there. Even though you have life insurance, your family could still be vulnerable. Critical illness cover can be that extra level of cover that you and your loved ones might need.
It can also help to give you some financial protection. For many of us, a mortgage will be the biggest financial commitment of our lives. It’s something that we will spend a long time paying for and you're building a home for your loved ones. Not to mention any other large expense such as a loan that you might have to pay back.
Everything that comes along with a critical illness can be stressful enough. It makes sense then to have something to help with that stress. Critical illness cover can provide you with the peace of mind of knowing that these things are taken care of.
What can Critical Illness cover be used for?
Life insurance is a protection that will help your family when you die. It is generally used to cover things like funeral expenses, loans and mortgages. When you suffer from a critical illness there are a lot of different ways in which the critical illness benefit can be used, not just on medical bills. The choice is ultimately up to you and depends on your situation. Here are some examples of the ways that a critical illness benefit can be used.
Replacement of Income
As mentioned before the cost of a critical illness can be seen in the potential for lost income. Recovery times vary depending on the illness but recovering from an illness could take at least a few weeks and at most of a few months. This can have a big impact on your family especially if you are the primary breadwinner.
Depending on the illness that you suffer you may have to look at a few weeks or months of rehabilitation. This can come in the form of physiotherapy. Having that extra bit of money to pay for the highest quality physiotherapy can make a world of difference to recovery times.
Remodelling your home
This point is linked to the cost of rehabilitation and the long term effects of a critical illness. Sometimes a critical illness can have a profound effect on your mobility. Even if it is for a short term recovery period you may need to look at making your home more accessible. Critical illness cover can help pay for the costs of this kind of remodelling.
While we could talk all day about needing to pay the bills this can be an important aspect to consider. Even if you were to recover from a serious illness, the mental and physical toll it can take on your family can be substantial. So it would only make sense to plan a break away from it all.
How does Critical Illness Cover with Life Insurance work?
Getting critical illness cover is a straightforward process. In fact, it’s just a couple of extra steps in the process of getting life insurance. You will be asked how much cover you need and for how long you would like that cover to last.
If you go for critical illness cover with life insurance there are a couple of things that you should understand. It can be helpful to look at them as two separate pieces of insurance. For the life insurance policy to pay out the insured person will need to die. With the critical illness policy, it can either payout if, during the term of the policy, the insured person gets a critical illness covered under their policy or the insured person passes away. The payout for critical illness is determined by which event happens first. To understand this clearly it can help to look at an example.
Tom has chosen to get life insurance and critical illness cover. He decided to get life insurance worth £100,000 and critical illness cover worth £20,000. If Tom contracted a critical illness specified on the list of illness given by the insurer and did not pass away, he would be entitled to claim the £20,000 worth of critical illness cover. Tom did not die so this means that his life insurance policy would still be in place. Therefore, his life insurance will continue to provide him with cover in the event of his death for the duration of the policy term.
On the other hand, if Tom never claimed on his critical illness cover and died within the policy term, his family would be able to claim the full £120,000.
Get the cover your loved ones deserve
Life can be unpredictable at the best of times. You may just want to leave it at life insurance. Yet, it can make sense to have something there for when things don’t go to plan. Critical Illness cover is a way of making sure your family is protected from some of what life could throw at you. You can have peace of mind that when things get bumpy in life there’s some protection for your loved ones.