UK Insurance Guide Resource Page #4

Critical illness cover

Critical Illness Cover provides a lump sum or a monthly amount which helps to meet the financial needs of a family when the main income disappears for good and the standard of living is shattered due to a serious illness. If the insurance holder is diagnosed with a life-threatening condition, such as heart attack or stroke , cancer, multiple sclerosis, loss of limbs etc. Critical illness insurance cover pays him/her a lump sum on diagnosis but it does not pay for the treatment as health insurance policies do.

Each insurer has their own list of covered illnesses and the policy specifies them. Some policies allow the insured to choose from their list. It is very important for a policy holder to make sure that exactly which illnesses the policy covers as the policy will be very specific about the illness that it will pay out for. A critical illness policy can range from a basic coverage to comprehensive policies which can include a basic critical illness as cancer to a more extensive range of conditions.

Critical Illness Cover can be taken out on its own or with life cover.