Critical Illness Insurance

It's when you need to make a claim that you realise just how wise investing in a critical illness policy can be.

Considering just how many lives are affected by critical illnesses such as heart disease, cancer and stroke, it is surprising that more people do not take out critical illness insurance.

The principle is straightforward; in the event of one or more of the specified illnesses being diagnosed, the insurance company will pay out a lump sum after a specified survival period. Often, critical illness cover is combined with other types of insurance and may even provide an investment element so that, for example, a given sum will be paid out on the death of the insured.

Note - Critical illness policies should be checked as only some forms of cancer, heart attack and stroke are covered by this type of insurance.

If the policy has no investment element then it will have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.

The policy may not cover all the definitions of a critical illness. For definitions please refer to the Key Features and Policy Document.