What Is Critical Illness Cover?

Facing a critical illness can be overwhelming, both emotionally and financially. Critical illness cover acts as a financial safety net, providing a tax-free lump sum to help you navigate the challenges of a serious illness, covering expenses like mortgage payments, rent, debt, or even necessary home modifications.

This includes things such as wheelchair access that have to be made as a result of an illness or injury. The payments that these policies offer can be a huge help at a stressful time, and vital for ongoing practicalities.

Umbrella covering a miniature house and figures

What illnesses are covered by critical illness insurance?

Critical illness providers will require you to get one of the specific conditions or injuries in order for them to pay out. Each insurer will have slightly different policies, therefore one insurer may cover what another won’t. However, the below is to give you a guide of what is likely to be covered by your provider:

Heart attacks
Strokes
Dementia including Alzheimer’s disease
Traumatic head injuries
Certain types and stages of cancer
Major organ transplants
Third degree burns
Parkinson’s disease

Open heart surgery
Loss of speech
Kidney or liver failure
Deafness
Blindness
Loss or paralysis of a limb(s)

Keep in mind, critical illness cover doesn’t pay out if you die, your life insurance policy would pay out instead.

Most insurers will list what their policies cover on their website, so you can be sure before you go ahead with anything. They will also state how severe certain conditions must be in order for you to be paid out.

If you’re unsure about what a policy entails, why not reach out today? Our team of expert brokers can advise you on suitable policies, ensuring you are matched with the best product that suits your individual circumstance.

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What’s not covered by critical illness insurance?

As mentioned above, critical illness insurance covers a long list of health issues you could face. However, what will an insurer not cover?

Many insurers will not cover the following, however it’s always best to check what is and isn’t covered before taking out a policy as each insurer will vary.

Pre-existing conditions: If you had a critical illness or condition before purchasing the policy, it will likely not be covered.
Mental health conditions: Generally, mental health conditions are not covered by critical illness insurance.
Illnesses caused by intentional acts: If your illness is the result of intentional harm, it may not be covered.

How does critical illness insurance work?

Tailoring your critical illness cover involves a few key decisions. You’ll need to determine the payout amount, considering the expenses you’d need to cover during illness, and the policy duration, ensuring it aligns with your long-term financial goals.

Some may choose to have the policy cover them until their mortgage is paid off and others may wait until they reach the upper age limit. Many lenders set this upper age limit to 75, therefore the policy must end before you reach this age.

Another part of the application process is a questionnaire about your health. Many insurers will require you to provide them with any medical records and information. You will also need to declare any existing health issues or conditions you may currently have.

You will also be required to answer questions about your current lifestyle and family history. From here, an insurer can look at things like your job and any genetic diseases, which in turn can help them decide how much of a risk you are. This will then determine the premium you will need to pay on your policy. The riskier you are, the higher your premium would be.

If the worst happens and you do suffer from one of the health issues listed in your policy, you will then be paid out. Although, once you are paid out, the policy will end. Therefore, you will be unable to claim again. This also applies to joint policies, so if one person claims, the other won’t be able to in the future.

What affects the cost of critical illness cover?

Your monthly premium for critical illness cover is influenced by several factors, including your age, lifestyle choices, occupation, desired coverage level, and even your hobbies. Insurers carefully assess these factors to determine your individual risk profile, which ultimately impacts your monthly cost.

The areas insurers will look at include:

Age – the older you are the higher risk you are seen as.
Lifestyle – your weight, if you used to or currently smoke, and family medical history will all play a part.
Work – certain jobs are likely to be seen as a higher risk than others.
Level of cover – what type of cover will you want and how long you want it for. The more comprehensive, the more likely it is to increase the cost.
Hobbies – certain insurers may look at any extreme hobbies or sports you may take part in, again this could increase your policy.

Who needs critical illness cover and how much do I need?

Falling ill and being unable to work can create a significant financial strain. Relying solely on your employer or Statutory Sick Pay might not be enough to cover your living expenses. Statutory Sick Pay will only cover £116.75 per week for up to 28 weeks. Critical illness cover offers a crucial safety net, ensuring you have the financial means to focus on recovery without worrying about bills.

Therefore, taking out a critical illness cover policy can be crucial for a number of individuals. This includes:

People whose family heavily rely on their income.
Employees who don’t have packages in place with their employer to cover them if they were to fall ill.
Individuals with no money in savings for a scenario in which they may be unable to work.

When considering a policy, the severity of the list above should also be considered and can help determine what type of policy you should take out.

For example, if you were to fall ill and your family would really struggle without your income, then you may need to take out a more comprehensive policy. However, if your family could get by without struggling then you may need something a little less comprehensive.

If you’re not sure how much critical illness cover you need, why not speak to an expert and discuss your situation? At IMC Mortgage Brokers we can review your situation over a free no-obligation consultation and help you determine if and what type of policy is required.

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How do you

get critical illness

insurance?

Before applying for a policy, it’s essential that you ensure you have all the relevant documentation to supply to a potential insurer.

You will need basic things like identification, as well as full details of your medical history. This also includes any pre-existing conditions you may currently have. Most insurers will also ask for contact details of your GP or medical consultant too.

Once you have gathered all relevant documentation you can then apply for a policy. Our expert advisers can help you apply for your policy. This can be done over the phone, face to face of the can send you an online link where you can complete all your health questionnaire details in your own time and in the comfort of your own space.

The application process for critical illness cover can be extensive, so consulting the help of an expert broker can be crucial. They will be able to assess your situation and find the most suitable policy that meets your needs.

The best thing about using the help of our expert advisors is that the service is completely FREE. Not only can you rest assured you are getting the best policy to suit your needs, they may be able to save you a lot of money in the long run.

Don’t leave your financial future to chance. Secure your peace of mind with critical illness cover. Contact us today for a personalised consultation and let our experts guide you towards the best coverage for your needs.

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Common misconceptions about Critical Illness Cover

Misconception: Critical illness cover is the same as life insurance.

Reality: Critical illness cover pays out upon diagnosis of a covered illness, while life insurance pays out upon death.

Misconception: I'm young and healthy, so I don't need critical illness cover.

Reality: A critical illness could strike you at any age, and the financial impact can be devastating regardless of health status. Therefore, looking into a policy, no matter your age, is a great idea.

Misconception: My employer's health insurance is enough.

Reality: Employer health insurance typically covers medical expenses but may not provide a lump sum to replace lost income or cover other costs associated with critical illness. So getting a critical illness cover policy as well as having a health insurance policy can be very beneficial.

Misconception: Critical illness cover is too expensive.

Reality: Premiums vary based on individual factors, and there are affordable options available. The more cover you need the more costly it will be as well. So, before you take out a policy you will need to think about who relies on you and your essential costs if you were to be put out of work due to illness.

If affordability is a major factor in deciding whether or not to take out a critical illness policy then you can always take out a policy for a reduced cover amount. This will make it cheaper for you and also give you some peace of mind, that in your time of need you have some cover in place rather than none.

Navigating the claims process

To make a critical illness cover claim, you will first need to contact your insurer. You can usually contact them by phone, email, or through a website portal. Some insurers still offer the option to contact them in writing too.

Typically, when you contact them you will need to provide the following:

Your policy number
Details of your diagnosis or illness
Contact details for your doctor or medical consultant.

To keep the whole process as smooth as possible, make sure you contact your insurer as soon as possible following your diagnosis. It’s also a good idea to keep meticulous records of all medical appointments, treatments, and expenses leading up to your diagnosis to facilitate a smooth claims process.

Your insurer will then require you to complete any necessary forms in order to make a claim. This will vary between lenders, but it will most likely be information about you and your illness.

Once everything has been submitted, you will need to wait for your insurer to conduct an assessment. This is done to ensure that your condition is covered by the policy.

Finally, if your claim is seen as valid, you will then be contacted to make you aware. Following on from this, you will then receive a payout within a designated time frame.

- Can I still get critical illness cover if I have a pre-existing condition?
Yes, you can still take out a policy if you have a pre-existing condition. Although, depending on the condition, it could cost you more, due to the additional risk a insurer will take on by offering you a policy.

Furthermore, certain insurers may not cover people with pre-existing conditions, whilst others may have specific policies designed for that purpose.

You will need to be honest with your insurer and provide any supporting evidence to prove any conditions. If you initially forget to add a condition when taking the policy out, ensure to contact your insurer and get your policy amended.

If you don’t notify them, then it’s likely that they may refuse to pay you out if something was to happen.
- Can you cancel critical illness cover?
You can cancel your cover at any time, however, once the policy has been cancelled you will be unable to reinstate it. To cancel, you will need to contact them with your policy number you were given when you initially took the policy out.

Many insurers offer a cooling-off period within the first 30 days, this will allow you to get a full refund if you haven’t made a claim. However, after this period, you may only receive a partial refund.

Before cancelling your policy, you should consider that if you plan to take out a new plan, it’s likely to be more expensive. This is because you will be older than when you first took your policy out, therefore you are seen as at greater risk of illness.
- When does my critical illness cover policy pay out?
Your policy will usually pay out if you’re diagnosed with a covered illness and if you survive for a set period. For most lenders, this period, sometimes known as a ‘survival period’, will usually be set between 14 to 30 days after diagnosis.

However, to be sure it’s best to check how your policy works before claiming as each person’s policy can be slightly different.

The survival period is put in place to ensure that you have truly been diagnosed with the illness and that it is not a temporary or misdiagnosed condition. It is also used to help prevent any fraudulent claims.
- What happens if I'm diagnosed with a critical illness but don't survive the survival period?
If you have a policy but don’t survive the survival period, it’s likely that your policy will not pay out. Typically this survival period is between 14 to 30 days, however it will depend on your policy.

The reason for this is that critical illness cover is solely designed to support you while you are alive. However, if you were to die then your life insurance policy, if you have one, would pay out.
- What impact can critical illness have on a person’s life?
Many different critical illnesses can lead to physical disabilities or limitations, affecting your mobility, independence, and overall quality of life.

To add to this, being diagnosed with a critical illness can be overwhelming and lead to feelings of fear, anxiety, and uncertainty about the future.

Seeking social support can be essential in helping you find your feet again. Speak to friends, family members, or even seeking specialist support can help. There are also services such as support groups, in which you can speak to people who are in a similar position to you.

If you want to take out a policy to protect you and your close ones, reach out today. We can ensure you are met with the right policy to eliminate as much stress as possible.

Speak to an expert

Yes, you can still take out a policy if you have a pre-existing condition. Although, depending on the condition, it could cost you more, due to the additional risk a insurer will take on by offering you a policy.

Furthermore, certain insurers may not cover people with pre-existing conditions, whilst others may have specific policies designed for that purpose.

You will need to be honest with your insurer and provide any supporting evidence to prove any conditions. If you initially forget to add a condition when taking the policy out, ensure to contact your insurer and get your policy amended.

If you don’t notify them, then it’s likely that they may refuse to pay you out if something was to happen.

You can cancel your cover at any time, however, once the policy has been cancelled you will be unable to reinstate it. To cancel, you will need to contact them with your policy number you were given when you initially took the policy out.

Many insurers offer a cooling-off period within the first 30 days, this will allow you to get a full refund if you haven’t made a claim. However, after this period, you may only receive a partial refund.

Before cancelling your policy, you should consider that if you plan to take out a new plan, it’s likely to be more expensive. This is because you will be older than when you first took your policy out, therefore you are seen as at greater risk of illness.

Your policy will usually pay out if you’re diagnosed with a covered illness and if you survive for a set period. For most lenders, this period, sometimes known as a ‘survival period’, will usually be set between 14 to 30 days after diagnosis.

However, to be sure it’s best to check how your policy works before claiming as each person’s policy can be slightly different.

The survival period is put in place to ensure that you have truly been diagnosed with the illness and that it is not a temporary or misdiagnosed condition. It is also used to help prevent any fraudulent claims.

If you have a policy but don’t survive the survival period, it’s likely that your policy will not pay out. Typically this survival period is between 14 to 30 days, however it will depend on your policy.

The reason for this is that critical illness cover is solely designed to support you while you are alive. However, if you were to die then your life insurance policy, if you have one, would pay out.

Many different critical illnesses can lead to physical disabilities or limitations, affecting your mobility, independence, and overall quality of life.

To add to this, being diagnosed with a critical illness can be overwhelming and lead to feelings of fear, anxiety, and uncertainty about the future.

Seeking social support can be essential in helping you find your feet again. Speak to friends, family members, or even seeking specialist support can help. There are also services such as support groups, in which you can speak to people who are in a similar position to you.

If you want to take out a policy to protect you and your close ones, reach out today. We can ensure you are met with the right policy to eliminate as much stress as possible.

Speak to an expert

Critical Illness cover