Consider the potential expenses you might encounter if faced with a critical illness that hinders your ability to work. From providing for your family’s needs to managing your financial obligations, navigating the challenges of sustaining your lifestyle without your regular income can be a formidable task. This is where critical illness cover proves beneficial.

Critical illness insurance is a type of insurance that pays out a lump sum or set income if a defined medical event occurs, such as a heart attack, stroke, or cancer. The insurance covers a set term, which may be equal to a mortgage term or until retirement. It is worth considering having one policy to cover the mortgage and another to provide money for a different lifestyle if a serious illness occurs.

Most people choose to receive a lump sum payment, but there is an option to receive it as a set income over the remaining term, which is often a lower cost option. It is important to note that if the policy has no investment element, it will have no cash value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.

It is important to review the policy’s definitions of critical illness as it may not cover all definitions. For more information on definitions, please refer to the key features and policy document.

Additionally, the value of the investment can go down as well as up, and it is possible to not get back as much as you put in.

Therefore, it is important to carefully consider the policy and its benefits before purchasing critical illness insurance.

Reasons to get Critical Illness Cover