What do I need to know before taking out critical illness cover?

For the thousand of different people taking out critical illness cover every year it will mean different things to each of them. Everyone has there own reasons as to why they might consider such insurance. Although it is one type of insurance it can cover a number of situations. Seeking advice on such a policy would mean that you could identify what options would suit you and those which may not.

A typical contract would cover you for the basic contract for example the specified number of illnesses which all providers would have to cover you for. If ever in doubt the Association of British Insurance (ABI) has been set up to help those consumers understand what could be perceived as complicated literature if you are not use to the industry jargon. In all critical illness cover contracts everyone is advised to read over confirmation of details provided and then are given the chance to make any amendments necessary where the ABI has set out practices to ensure that all information is clear and easy to understand. This best practice ensures that there is a common theme among all literature and the appropriate use of terminology whilst also ensuring that they represent ‘general’ insurance.

Reading the statement of best practice may be needed for a proportion of people before taking out critical illness cover. Others may receive and understand all the appropriate literature they need from a financial adviser and therefore this may not be needed but it is a good thing to have as they are the ‘voice’ of the insurance industry within the UK.

Breast cancer and critical illness cover, what UK women should and need to know.
Discovering your diagnosis of cancer can be one of the most complex situations to deal with, for both you and your family…

Avoid the major pitfalls when wanting to claim critical illness cover benefits
Although here at Critical Illness Insurance we take the time to offer the most dedicated and professional services for those looking to find cost efficient and affordable critical illness cover,..

A breakdown of the processes involved when applying for critical illness cover.
For many, the process of obtaining a critical illness insurance policy can be very confusing and often bewildering when understanding the processes involved…

Critical Illness Insurance and Children – can they be included in the policy?
Offering a sigh of relief in answer to this question, children can be included within a critical illness policy that is taken out by either parent, offering the same level of protection against critical illnesses as long as they have no previous medical issues such as birth defects that affect the heart or the major organs for example…

Association of British Insurers note improvement in Critical Illness payouts
According to the Association of British Insurers, there has been a noticeable improvement in the number of successful critical illness insurance claims being processed in the last two years…

Are you paying too much for your critical illness cover simply because of convenience?
An issue for first time buyers and current home owners across the UK, gaining a mortgage is a highly serious move and means that you become committed to paying off a large investment for a number of decades…

Are there any benefits to buying combined Critical Illness and Life Insurance policies?
The figures show that life insurance in the UK is more popular than critical illness insurance or income protection insurance…

How Britons Really Feel about Critical Illness Cover
Although relatively new in many cases, critical illness insurance has been slow in gaining the recognition it deserves throughout the UK, as an effective and proficient insurance policy, especially for an insurance policy that offers so much tailored and beneficial protection in the event you develop a serious critical illness…

Critical Illness Cover Policies Increase as Economy Improves
Thanks partly to the superb coverage that critical illness insurance has been receiving lately and for the first time in the last 3 years or so that the economy has begun showing signs of improvement, new figures show that there is an increase in the number of critical illness insurance policies being taken out as precautionary measures…

How Critical Illness Has Evolved and Improved Since the 1990s
Only recently introduced within the UK over the last decade and a half, critical illness insurance has already come on in leaps and bounds since its first introduction to Britain towards the end of the nineties…

Lose Weight or Pay More on Critical Illness Cover
A common problem spreading quickly across the UK over the last thirty years or so is the number of obese people now in Britain….

What Type of Premium Should You Choose for Critical Illness Cover?
Because of a growth in the popularity of insurance policies, especially critical illness policies, there has been an exponential growth in the number of UK residents that have chosen to take out Critical Illness protection…

3 Important Facts to Consider Before Buying Critical Illness Cover
In any context, purchasing critical illness insurance cover can mean the difference between developing a serious illness and having no protection or having a policy in place that could offer you the financial protection to cover your lost earnings, mortgage payments, bills and other day to day running costs within your life…

Which Serious Illnesses Are You At Risk From?
Possibly out of all the serious illnesses that are contracted each year and most likely protected by critical illness insurance policies are those regarding cardiovascular disease, strokes and heart disease, by far they are listed as the biggest killers in the UK…

The importance when filling out your critical illness application properly
As you will probably now be aware of, critical illness insurance policies are designed to offer you a tax free cash lump sum of money, particularly if you are diagnosed with any one of a myriad of illnesses classed as serious or critical…

Critical Illness Cover – what can the benefits pay for?
Critical illness insurance, much in the same way as many other insurance policies is designed to offer a tax free cash payout, a lump sum to use as you see fit…

There are a number of generic terms which are used throughout all literature, however they should be explained in another part of the documentation to ensure that they are clear and simple so that they are easy to understand. It makes someone’s decision that much easier when they know all the facts and can make an informed decision.

Although there has been a lot of controversy over the past years about taking out critical illness cover, the recent guidelines have simplified and clarified the procedures required, which have resulted in a substantial reduction in non disclosure claims.

When completing an application form over the telephone, with an insurance broker or on the internet, you need to be as honest as possible and whatever may seem minor to you because you made a full recovery or the illness no longer causes any problems it should still should be documented within the application form to give the insurance provider a full picture of your medical history. The reason why claims may have been rejected in the past is because for example if a medical condition was not disclosed at the time of application and this then led to a critical illness being suffered then the insurance provider would deem that knowing the condition before terms were offered then they may not have offered the same terms, as policies can be increased in price, offered with an exclusion or even declined.

It is hard to remember what typically has happened over recent years but it is important to get all the information necessary even if you have to go and ask you’re your medical records which would give you a list of the conditions or medication you may have taken. The reason why it is so important as this could be the difference between being paid if suffering a critical illness or not. Once you have applied for critical illness cover you are sent a copy of the application form for you to read carefully to be able to identify whether or not anything has been missed off the application. You would then be able to send back any amendments that need changing and the provider would then be able to re asses the information and hopefully not need to make any changes to the terms offered.

When it comes to considering taking out a form of protection insurance for yourself and or your loved ones such as critical illness cover there can be many questions that you want to clarify. Why should I take it out? How much cover should I consider? Who should I take the cover out with? Some people may say that this type of cover is pointless and not worth the money you pay for it, and then there are others that may of experienced a critical illness, know someone with one or have heard of someone else, which has changed their opinions completely and therefore wish to consider applying for a policy.

As I am sure you are aware a critical illness can have a devastating affect upon the life of an individual and their surrounding family and friends. The last thing you want to be worrying about at a time like this would be financial issues, hence considering an insurance policy to cover and protect yourself for that reason.

One of the main considerations that can become a difficult decision down the line for individuals is the actual amount of critical illness cover that you take out. This can be a number of contributing factors that can get you to the total sum assured that you end up agreeing on and setting a policy up with. Influences might be whether or not you are in a serious relationship with someone, your current finances, your age, if you have any commitments both financially and physically, if you have a mortgage, children or loans.

First of all you should take into account any savings that you may have or don’t have. Does this money amount up to a substantial amount that could “keep you going”, pay bills and support you and your family should you be diagnosed with a critical illness and you are no longer able to work? Would it cover the costs of also adapting your home to ensure you were more comfortable and pay for medication? These are just a few examples of the many reasons why critical illness cover should be considered and even taken out.

Secondly you should consider how much money would be needed if you were to cover all of your existing loans. In some cases it is not affordable to take to take out large amounts of critical illness cover because it can be relatively expensive on a monthly basis to match it. It is always best to try an ensure that the largest parts of your financial commitments are covered so that in the eventuality you are diagnosed with a critical illness that at least some of your money worries are taken care of, along with a premium that you can afford on a regular basis. There is no point in over insuring just as there is no point in underinsuring, however you should always be able to comfortably afford your premiums. If you struggle upon deciding how much cover you feel you need you can often get free advice from a financial adviser.

With regards to the period of time that you take an insurance policy out for, this can be very similar to deciding upon how much cover you should need. One of the main factors however is your age, the older you are the fewer amounts of years is available to consider to take the critical illness cover out over. If you were to tie this sort of insurance into a mortgage then you can coincide the period of cover in with the amount of time that the mortgage has to run. This would ensure that in the event of you being diagnosed with a critical illness and paid out for your claim, you would be able to clear your mortgage or at least pay a substantial amount of it, and have the worry of finding the money for the mortgage taken off your shoulders, at what could only be a difficult time anyway.