Critical Illness Cover

With 1 in 2 people now being diagnosed with cancer,

It's increasingly a matter of when, rather than if.

What is Critical Illness Cover?

Critical Illness Cover (CIC) is a type of insurance that provides a lump sum payment if the policyholder is diagnosed with a specific critical illness listed in the policy.

The purpose of this cover is to offer financial support during a challenging time when you may be unable to work and face significant medical or living expenses. The tax-free, one-off payment can be used to cover costs such as medical treatment, mortgage or rent payments, or even home adaptations like wheelchair access if needed.

This financial cushion can help reduce the strain on you and your family, allowing you to focus on recovery.

Who is it Designed for?

Critical Illness Cover is suitable for a range of individuals and families who want to ensure financial stability if they experience a severe illness. Whether you're a parent, homeowner, or sole breadwinner, this cover provides peace of mind by helping to safeguard your family's financial wellbeing during difficult times.

Individuals with Dependents

  • Parents: Critical Illness Cover can provide financial security for children and dependents if a parent is unable to work due to a severe illness. This support can help cover daily expenses, education costs, or household bills during a difficult time.

  • Caregivers: For those responsible for caring for elderly or disabled family members, Critical Illness Cover ensures they can maintain their caregiving role without financial hardship, should they be diagnosed with a serious illness.

Primary Breadwinners

  • Single-Income Families: In households where one person is the primary or sole earner, Critical Illness Cover provides crucial financial support if the breadwinner is unable to work due to illness. This can help with essential expenses such as mortgage payments, bills, and daily living costs.

  • Dual-Income Families: Even in dual-income households, losing one income due to a critical illness can have a major impact. Critical Illness Cover helps bridge the financial gap, ensuring the family can maintain their standard of living while managing recovery.

Homeowners with Mortgages

  • Mortgage Holders: Individuals with significant mortgage obligations can benefit greatly from Critical Illness Cover. In the event of a serious illness, the lump sum payout can be used to cover mortgage payments or even pay off the mortgage entirely, reducing the risk of losing their home and providing peace of mind during a difficult time.

Self-employed Individuals and Business Owners

  • Self-Employed: Without access to employer-provided sick leave or disability benefits, self-employed individuals must rely on their own resources during illness. Critical Illness Cover provides a financial safety net, helping to secure their income and cover living expenses if they are unable to work.

  • Small Business Owners: Critical Illness Cover can help ensure the continuity of business operations if the owner becomes seriously ill. The lump sum payout can be used to cover business expenses, hire temporary staff, or keep the business running while the owner recovers.

People with Limited Savings

  • Individuals Without a Financial Safety Net: For those who lack substantial savings or other financial resources to rely on during a serious illness, Critical Illness Cover provides crucial financial support. The lump sum payout can help cover medical expenses, living costs, and other essential bills, preventing financial strain during recovery.

Young and Healthy Individuals

  • Young Adults: Securing Critical Illness Cover while you're young and healthy can be more cost-effective, as premiums are typically lower. It also provides early protection, ensuring you're covered before any potential health issues arise, giving you long-term peace of mind and financial security for the future.

High-Risk Occupations

  • High Stress Jobs: Individuals working in high-stress or physically demanding professions face an increased risk of certain illnesses. Critical Illness Cover provides financial protection, ensuring that if they are diagnosed with a serious illness, they have the resources to manage medical expenses, living costs, and recovery without the added burden of financial stress.

People with a Family History of Critical Illnesses

  • Genetic Predisposition: Individuals with a family history of critical illnesses such as cancer, heart disease, or other serious conditions may have a higher risk of developing these diseases themselves. Critical Illness Cover can provide valuable financial protection, ensuring they have the necessary support in place to manage potential medical expenses and maintain their financial stability in the event of a diagnosis.

Individuals Wanting Peace of Mind

  • General Security: Critical Illness Cover offers peace of mind to anyone seeking financial protection against unexpected, severe health issues. Knowing that you have a safety net in place allows you to focus on recovery and your loved ones, alleviating stress and uncertainty during challenging times. This coverage ensures you can maintain your quality of life and address any medical or living expenses that may arise.

In summary, Critical Illness Cover is beneficial for everyone, particularly for those with dependents, financial obligations, or insufficient savings who wish to secure their financial stability in the event of a severe health issue.

This insurance provides a safety net to help manage the financial impact of critical illnesses, enabling individuals and families to concentrate on recovery without the added burden of financial stress.

What Illnesses are Covered?

Critical Illness Insurance provides a lump sum payment if you are diagnosed with one of the specific medical conditions or injuries listed in your policy. In most cases, the policy will pay out only once, at which point it ends.

The range of conditions covered can vary widely between insurers, with some policies covering 70 to over 100 conditions, while others offer more limited coverage. Some insurers also provide smaller payments for less severe conditions, depending on the severity.

Common examples of critical illnesses that might be covered include:

  • Cancer

  • Heart Attack

  • Stroke2 Column

  • Multiple Sclerosis

  • Major Organ Transplant

  • Parkinson’s Disease

  • Alzheimer’s Disease

  • Kidney Failure

  • Paralysis

  • Brain Tumour

  • Muscular Dystrophy

  • Cardiomyopathy

Most policies also cover permanent disabilities caused by injury or illness.

Children Critical Illness Cover

No one ever wants to imagine their child becoming critically ill or suffering a serious accident, but unfortunately, it can happen.

Many insurance providers offer Children's Critical Illness Cover as part of their standard policy or as an optional add-on to adult Life or Critical Illness products. This cover provides financial support during an incredibly challenging time, helping to ease the financial burden. While it can never take away the emotional pain, it allows parents to focus on what matters most—spending valuable time caring for their child.

How Much does Critical Illness Cover Cost?

Much like Life Insurance, the cost of Critical Illness Cover is influenced by various product and personal factors:

Product Factors Affecting Premiums:

  • Sum Assured: The amount that would be paid out in the event of a claim.

  • Term: The length of the policy, with longer terms generally increasing premiums.

  • Level, Increasing, or Decreasing Cover: Whether the sum assured stays the same, increases, or decreases throughout the policy term.

  • Waiver of Premium: An optional benefit where, if you are unable to work due to a serious health issue, your premium payments are paused temporarily.

Personal Factors Influencing Premiums:

  • Age: Premiums tend to increase with age.

  • Smoker Status: Smokers, ex-smokers, and non-smokers are assessed differently, with smokers typically facing higher premiums.

  • Body Mass Index (BMI): Your height and weight will impact your premiums.

  • Existing Medical Conditions: Any pre-existing health conditions can lead to higher premiums.

  • Family Medical History: A family history of certain conditions may increase your premiums.

  • Occupation: Jobs that are considered higher risk can also increase the cost.

All these factors help determine your premiums, and some conditions may attract additional charges referred to as loadings. Unlike Life Insurance, Critical Illness Cover may have exclusions for pre-existing medical conditions, meaning certain conditions may not be covered.