Critical Illness

What it is:

Generally, Critical Illness Benefit (CIB) can be added to various forms of life policies, or taken out as a ‘stand alone’ policy. It is designed to provide a lump sum (for any use) in the event of the policyholder being diagnosed as having one or more of the defined serious illnesses covered.

We feel that, in many cases, for many families and certainly for single people, it is more important than life cover. This is because, if, say, one parent were to die in a young family of four, then financially from that point on there are only three people’s needs to cover. However, if the same parent had not died but had suffered a serious illness, there are still four people’s needs to finance in future. The illness may or may not mean that he or she has to give up work, but the need for money will almost certainly increase at this time and possibly for the future.

How reassuring would it be, then, to have the mortgage loan paid off completely in this situation? Or even to have the cash sum provided to pay for private medical treatment if required?

This is not to be confused with Terminal Illness Cover, (but very often is), which only pays out when the policyholder has been diagnosed as having less than 12 months left to live. – In effect, when this is included in a life policy, it is only paying the normal death benefit up to 12 months early. This, of course, could be a great help at such a time.

For a more detailed definition, here is a useful link to the ABI guide to Critical Illness cover:
Click here

All Insurance Companies provide slightly different levels and types of this cover. It is vital to obtain independent analysis of the differences in cost and cover before deciding on a particular Provider.   [Contact Us]