Critical Illness Insurance

What is a Critical Illness Insurance Policy

A critical Illness insurance policy pays out a lump-sum in the event of you being diagnosed with an Illness, injury or disability that is covered by the policy.

In the event of you making a successful claim and the policy paying out, the policy then stops. The provider of your critical illness policy will however not ask for the money back if you get better.

Things to Know About Critical Illness Insurance

With all critical insurance policies there is an initial survival period (typically 14 days), that you must pass in order to make a claim.

The number & definitions of the illness’ covered will vary greatly from policy to policy and between providers. They all will however typically meet the Association of British Insurers (ABI) standard definitions.

Some insurers will include free additional benefits such as Children’s Cover in your critical illness insurance policy.

Terminal illness cover is also included in critical illness insurance plans, but not the other way round.

Critical Illness insurance plans often come as part of a life insurance policy. You can however take it on its own, although it often costs more this way.

Are There any Options on a Critical Illness Policy I can have ?

Total Permanent Disability can be built-in with critical illness insurance. This means that you are paid upon diagnosis of an illness that prevents you from being able to work and is permanent. Your occupation will decide if there are any exclusions to this option.
You have the option of including Waiver of premiums with your critical illness insurance. This means that if you are off work due to illness or injury for more than 6 months, your premiums can be waived, although you keep the policy, until you go back to work. What you do for a living and your health, will decide whether there are any exclusions to this option.
Most insurers offer a ‘Buy-back’ option with critical illness insurance. This means that in the event of a claim & payout, you are allowed to buy-back certain illnesses. It means if you are unlucky enough to get ill again, you are able to make an additional claim, although not for the same thing twice!!!
‘Guaranteed Premiums ‘means that the amount you pay every month is guaranteed to stay the same. Nearly all Life Insurance plans come with a guaranteed premium already. If you add critical illness insurance, then you have a choice between guaranteed and reviewable, with guaranteed premiums generally being more expensive.
‘Reviewable Premiums’ are where the monthly premium for your critical illness insurance policy will be fixed, typically for the first 5 years only, and then reviewed by the insurance company. They do this based on their claims history over that period and could increase, decrease or leave your premium the same. After the first review, some companies will fix the premium for another 5 years; others review it every year thereafter.