Critical Illness Cover FAQs
Should I consider severity based policies?
- Almost certainly you should consider a policy that has a better chance of paying out and not be constrained by a number of predefined illnesses. Some companies are playing a numbers game where they state that they have 42 diseases covered and others only have 39.However, you can still only get one payout. With severity based policies you are covered for 150+ and can receive more than one payout and your cover can be reinstated if required.
What is life or earlier critical illness?
- This is first event policy, if you contract a critical illness from the defined list of illnesses you will be eligible to claim. In the event you make a successful claim that is the end of the policy.
- Equally if you die the policy pays out and that is the end of it.
What should I consider when looking at Critical Illness cover?
- Critical Ilness cover is an insurance policy in the event you contracting one or more of a defined list of specific illnesses.The policy will only pay out once.
- In the event of a claim it will be extremely difficult to get re-insured.
- Therefore one should consider severity based policies where multiple payouts can be claimed for and re-insurance is a real alternative.
- You should also consider taking a lower sum assured on Critical Illness as it is expensive. Many of our clients take a low cost Life policy for the full sum assured and a Critical Illness policy based on a payout of twice their anual salary.
Why not stand alone critical illness?
- The way that Critical Illness cover is presented to the market it is often cheaper to take a combined policy.