This type of cover can be added when you take out a term assurance policy for an additional cost It is designed to pay out a lump sum in the event of you being diagnosed with one of the specified critical illnesses during the policy term. This means you don't have to die to benefit from this cover.
The lump sum paid out can help with the extra costs incurred as a result of being diagnosed with a particular critical illness. It is important to note that the policy only pays out if you are diagnosed with one of a defined list of illnesses specified in your policy. It is important to remember that if you are diagnosed with an illness which is not covered by your policy you will not receive a pay out.
Unless you have substantial savings, some form of Critical Illness insurance may well make sense for you, particularly if you have any debts such as a mortgage. How much cover you should have depends on your circumstances. Consider the lump sum that you might need in the event of being diagnosed with a critical illness - being able to pay off the mortgage or making modifications to your home, for example. If you're able to cover the necessary amount from your own or your partner's savings, then critical illness insurance may well be unnecessary and it may be more appropriate to look at covering your income instead.
As with all protection products you must make sure that the term of the plan is suitable for your needs. There is no cash value unless a valid claim is made.
Hays Financial Centre Ltd is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Quilter Financial Services Limited and Quilter Mortgage Planning Limited are entered on the FCA register (http://www.fca.org.uk/register/) under reference 440703 and 440718.
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