Where life insurance is there to cover a person in the event of death, Critical Illness Cover provides peace of mind for a person living through a serious illness.
If you were ever diagnosed with a serious, life-threatening illness, money is usually the last thing on your mind. However, it is very important to understand the reality of the financial implications that arise from falling critically ill. You could be left without an income due to being unable to work for a long period, or with a permanent physical disability that requires alterations to your home.
It’s not nice to think about, but having a plan in place for the worst case scenario can make all the difference. With a critical illness payout you can make sure that you pay for the best treatment possible, can afford to stay off work to get the rest you need, or even do the things you’ve always wanted in your last months.
Usually Critical Illness Cover can be obtained as a “bolt on” addition to life insurance cover, or can be bought as a stand-alone policy. Usually, a lump sum is paid out upon diagnosis of the critical illness, or in some cases a regular payment (often to replace an income) is made instead.
The cost of any insurance policy is dependent on several factors – age, gender, location, occupation, length of policy, and how much you wish to be covered for. Other things that can affect the cost of a policy are health issues – for instance, if the policyholder is a smoker, or if they have any pre-existing medical conditions that could affect their health. Illnesses and conditions that are commonly covered by this type of insurance include strokes, heart attack, various forms of cancer, Alzheimer’s Disease, and major organ transplants.
These factors illustrate the importance of getting cover that is correct – if the policy is inadequate it could leave a financial shortfall at the worst possible time, or worse. If the cover is a poor fit for the policyholder, or vital information is undisclosed, the insurance could be considered invalid, and may not be paid out at all.
It all sounds a bit complicated and dismal, but with Active Brokers we can make the whole process of finding cover simple, easy and stress free. Getting the right cover doesn’t have to be painful. Find out more about critical illness cover here, call in, or ask your questions directly on our web chat function.