Critical Illness insurance is available on its own or with life insurance cover
Your questions answered about Critical Illness
Q: What is critical illness cover?
A: Insurance that pays out a cash sum on the diagnosis of, usually, one of the six core specified critical illness conditions
Q: What are the medical conditions covered?
A: These vary from policy to policy but typically include: cancer, heart attack / coronary bypass surgery, kidney failure, major organ transplant, multiple sclerosis and stroke.
Q: After diagnosis, how soon would a benefit be paid?
A: Generally within 28 days of a specified illness being diagnosed. However, this varies depending on the insurer.
Q: Are benefit payments taxable?
A: The cash sum paid out is tax free.
Critical illness insurance does not cover any general sickness or illness that affects your ability to work – it is very specific about which illnesses are covered. Look at Income Protection insurance. Some insurers exclude all pre-existing conditions but others will decide on the basis of your personal medical history.
Critical illness insurance differs to other types of protection insurance such as income protection or payment protection insurance, so make sure that you understand what it does and whether it is right for you.