Critical illness insurance will pay you a lump sum if you are diagnosed with a specified critical illness. The cover can be used to help protect dependents and families from financial loss.
Single people with limited assets should also have this type of cover in place. Most employers provide a multiple of salary on death. However, many do not insure their employees against the more likely event of getting seriously ill.
The money can be used to
pay for specialist medical care or can be drawn down and used for income
if the fund is large enough.
Critical illness polices vary considerably in terms of how comprehensive
the cover is, but all of them will cover a wide range of possible
illnesses.
It's also worth noting that critical illness policies pay out on diagnosis, even if you subsequently make a full recovery.
It's a sad fact that you are about three times more likely to get seriously ill before retirement than you are to die before retirement. Simply because not all serious illnesses result in death. Getting seriously ill may also place an ongoing financial burden on your loved ones.
We find that many of our clients are under-insured against the risks associated with getting seriously ill and that the options available to them are not very well understood. We've summarised the options in the next couple of sections, but please contact us with your questions if you would like some help in this area....
Footpath Financial Limited is a firm of Independent Financial Advisers who are authorised to advise on and arrange life insurance and related products. Based in Farnham and Crowthorne we serve the Guildford, Hindhead, Alton, Farnborough and Basingstoke areas. We are Authorised Representatives of the Financial Planning Partnership, who are authorised and regulated by the Financial Services Authority.