What is Critical Illness Insurance?

• Critical Illness insurance provides cover in case you become critically ill.

If you plan it in conjunction with your mortgage, Critical Illness Cover will, at an extra premium, provide you with a tax-free capital sum to pay off your mortgage if you are diagnosed with a critical illness and are unable to work.

If you can afford it, this is a worthwhile option to consider, but sometimes it can be expensive. Critical Illness immediately pays out a lump sum if you are diagnosed with a serious illness. The Insurance Company provides an extensive list of illnesses which it defines as “critical illnesses”. For example, these illnesses normally include deafness and blindness as well as named cancers. The important thing to note is that with a “Critical Illness” you may well survive for very many years, but years when your earning power may well be nil or severely restricted.

It is worth noting the following:

• 1 in 5 men suffer a critical illness before their normal retirement age.
• 1 in 6 women suffer a critical illness before their normal retirement age.
• 35% of men and 46% of women who develop cancer survive at least 5 years
• 78% of stroke victims survive more than a year.

Please note : The information contained within the FAQ section has been written by Mortgage Protected Online

Related questions:

Can I include Critical Illness Insurance on my Life Insurance Policy?

What kind of Employment Cover do I need?

What is the difference between Terminal Illness Cover and Critical Illness cover?