Do I Need Critical Illness Cover?

If you’re contemplating taking out Life Insurance in Cardiff or revising your current policy, you might be unsure about whether to include Critical Illness Cover as well.

Critical Illness Cover offers a lump sum payment in case you are diagnosed with a severe illness that is covered by the policy.

This article will look further into this type of insurance and help you to determine whether it is a suitable option for you.

What is Critical Illness Cover in Cardiff?

Critical Illness Cover in Cardiff is a type of insurance that provides a lump sum payout when you’re diagnosed with a severe illness that falls under the policy’s coverage.

The payout amount is dependent on the level of cover you have and the extent of your illness. A few policies may also offer partial payouts for less severe illnesses.

The range of illnesses covered by the policy varies among providers, but usually will include conditions such as cancer, heart attack, stroke, and multiple sclerosis.

Certain policies may also cover other diseases or conditions, like Parkinson’s disease, kidney failure, and any major organ transplants.

Do I Need Critical Illness Cover in Cardiff?

When you are thinking about Critical Illness Cover in Cardiff, your unique circumstances and priorities will play a significant role in deciding whether it’s the most suitable choice for you.

To help make an informed decision, consider the following factors:

• Your Health: In case you have a pre-existing medical condition or a family history of severe illnesses, you might wish to explore Critical Illness Cover in Cardiff. This insurance could offer help with your finances, in the event you found yourself with a critical illness.
  
  It is important to note, however, that some providers may exclude an illness, that you have previously had or that could be hereditary. You’ll need to discuss this with your advisor, as it is taken on a case by case basis.
• Your Lifestyle: Individuals who have high-stress jobs, take part in heavy smoking or drinking, or follow an unhealthy diet, may have an increased risk of developing severe illnesses.
  
  If you fall into this category, Critical Illness Cover in Cardiff could offer reassurance and monetary security.
  
  Your lifestyle will be taken into account when it comes to what is covered and your monthly premium.
• Your Financial Situation: In the event that you were to fall critically ill and unable to continue working, would you be able to cover your bills and other expenditures?
  
  If not, taking out Critical Illness Cover in Cardiff could be a wise decision.
• Your Existing Insurance: If you have Life Insurance in Cardiff already, it’s recommended to check whether Critical Illness Cover is incorporated in your plan.
  
  If it’s not, you might want to think about having this taken out as an additional feature.

Benefits of Critical Illness Cover in Cardiff

There are many different benefits to taking out Critical Illness Cover: 

• Peace of Mind: Being aware of having a financial safeguard in place in the event of a severe illness, can offer a sense of peace and reduce stress.
• Financial Support: The lump sum payment offered by Critical Illness Cover in Cardiff can help you in managing medical bills, daily living expenses, and other expenditures linked with a severe condition.
• Flexibility: The payout received from a critical illness policy are not restricted to a specific purpose.
  
  You have the freedom to utilise it in any way you desire, such as paying for private medical treatment, settling your mortgage, or adopting lifestyle changes that could aid in your recovery.

Potential Drawbacks

Just like any insurance, Critical Illness Cover also has some potential drawbacks that you should consider before purchasing it:

• Cost: If you have pre-existing medical conditions or a family history of serious illnesses, Critical Illness Cover in Cardiff may be more expensive than standard Life Insurance.
• Coverage Limitations: The illnesses that are covered under Critical Illness Cover in Cardiff may differ among insurance providers, and there could be certain restrictions or exclusions in some policies.
  
  It’s crucial to review the policy documents carefully to comprehend what the coverage entails and any limitations that apply.
• Waiting Periods: It’s important to keep in mind that some Critical Illness Cover policies may come with a waiting period before you can make a claim.
  
  As such, it’s crucial to be aware of any waiting periods and ensure that you have adequate savings to cover your expenses during that time.

Alternatives to Critical Illness Cover in Cardiff

If you’re unsure about whether Critical Illness Cover is the right fit for you, there are alternative options to consider:

• Income Protection Insurance: This insurance can offer a regular income in the event of an illness or injury that prevents you from working.
• Savings: While having an emergency fund or savings can offer some financial security in the event of a serious illness, it may not be sufficient to cover all the expenses.
  
  In most situations, the payout from appropriate insurances, such as Critical Illness Cover, may exceed the amount you can save.
• Government Benefits: In the event of illness preventing you from working, you could be eligible for government benefits, including Statutory Sick Pay or Employment and Support Allowance. 

How Cardiffmoneyman Can Help

If you’re still uncertain about whether Critical Illness Cover is the right choice for you, it’s wise to seek expert insurance advice from a professional protection advisor in Cardiff.

At Cardiffmoneyman, our protection advisors are well-equipped to offer advice on various insurance products, including Critical Illness Cover.

We can help you in understanding the pros and cons of different policies, and help you determine the appropriate level of coverage based on your individual circumstances.

As well as Critical Illness Cover, we can also provide insurance advice on other products like Life Insurance in Cardiff, Income Protection, and Family Income Benefit.

By assessing your current policies or recommending new ones, we can help ensure that you are well-protected in the event of unexpected events.

Our team can also offer mortgage advice in Cardiff, including buy to let mortgages in Cardiff, remortgages in Cardiff, and first time buyer mortgages in Cardiff, among others.

We can help you navigate through the various options available and locate the best mortgage deal that suits your specific requirements.

To summarise, whether you require Critical Illness Cover or not depends on your individual circumstances and priorities.

If you have a pre-existing medical condition, a high-stress job, or are concerned about your financial situation in the event of a serious illness, then it may be worth exploring this as an option.

That being said, it is important to weigh the potential benefits and drawbacks of the policy and any alternatives.

At Cardiffmoneyman, our protection advisors in Cardiff are ready to assist you in navigating the complex world of insurance and finding the most suitable protection for your needs.

Is Critical Illness Insurance Essential?

Critical illness cover is an insurance policy that supports you financially if you are diagnosed with a severe illness.

When taking out the policy, it’s important that you mention any underlying medical conditions you have. The conditions you have disclosed may not be covered by the policy. Furthermore, if you have failed to mention the underlying medical condition, this could potentially mean your policy would be voided in the event of a claim.

The financial support will be from a lump sum of money that is a one-off payment to help pay your mortgage, medical, or if needed, modifications to your home.

What does critical illness cover? 

The insurance will cover you in the event that you are diagnosed with a particular medical condition or injury that is stated within the policy.

It’s important that you read the policy thoroughly to understand which specific conditions are covered. This is due to the fact that the policy will not cover all instances of a certain illness.

It’s common for customers to confuse critical illness cover with life insurance. They are two insurances that can be purchased together, however, what they cover is very different.

Examples of critical illnesses that might get covered include: 

• Stroke 
• Heart Attack 
• Certain types and stages of cancer 
  
  Permanent disabilities resulting from injuries and other illnesses that are not stated might still be considered in the policy.

What isn’t covered? 

The following that might not be covered within the policy could include more severe forms of cancer and other conditions. Health problems you knew you had before you took out the insurance will probably not be covered. Furthermore, this type of insurance doesn’t payout if you pass away.

What will and won’t be covered will be stated in the policy details therefore make sure you understand the policy and check all the documentation protects your needs.

Other types of insurance you might need 

Other types of insurance can provide support should something unfortunate happen to you. Below, are a list of some you might want to look into:

• Do you need life insurance?
• Do you need income protection insurance?
• Do you need mortgage protection insurance?

Our Critical Illness Insurance Advice service in Cardiff

At Cardiffmoneyman, we offer all our customers a free, no-obligation protection review where we will look into any existing policies you have in place and check if they are appropriate for you. It’s important to know that insurance is massively beneficial.

Affordability is key when looking into insurance. That’s why a protection specialist in Cardiff, like ourselves, can provide you with the best cover that is suitable to your circumstances and priorities your budget and family.

Which Insurance is Right For You in Cardiff?

Mortgage protection insurance is a term used to encompass various types of cover designed to protect borrowers like first time buyers in Cardiff from events that could severely impact their ability to maintain mortgage payments. 

There are different variations, but when connected to a mortgage, they are all there to provide peace of mind and usually fall into the following categories: 

• Life Insurance
• Critical Illness Cover
• Income Protection 
• Family Income Benefit 

Life Insurance

As a rule, if the policyholder dies within the term, then the sum assured should be enough to pay off the outstanding mortgage balance and ensure the borrower’s dependents aren’t left with a debt they might not otherwise be able to manage.

How We Can Help You

Our protection specialists in Cardiff can run through all the different types of life cover and recommend the most suitable plan for you. 

Critical Illness Cover

Critical Illness Cover works similarly to life insurance in that it is usually taken for a specific term of years and can have different options such as level/increasing. 

It pays out a lump sum, and, like life cover, it is taken on a decreasing term basis in line with the reduction of your mortgage balance for borrowers.  

The key is that the benefit is paid if you fall victim to one of several specified critical illnesses and pays out whatever the long-term prognosis of that illness. The type of illnesses covered vary from company to company. 

That’s why this type of insurance cannot be solely price-driven and always recommended advice. 

In practice, many companies will offer life and critical illness cover as a combined policy and would usually payout on the “first event”, i.e. whatever happens first – either death or a severe illness – the payout is made. They can also be written on a single or joint life basis. 

Income Protection

Whereas life and Critical Illness Cover pay out a lump sum, income protection pays out a monthly sum designed to replace your wages if you are unfit to work. 

Unlike Critical Illness Cover, there are no restrictions on the illnesses or injuries covered, the only factor being whether they make you unfit to work. 

However, there are restrictions on how much you can cover and how quickly benefits would start to be paid. 

Like life and Critical Illness Cover, these policies are underwritten based on your health and lifestyle when you apply. All income protection policies are written on a single life basis. 

Family Income Benefit

Unlike the traditional forms of policy, the cover would pay an annual or monthly income for the remainder of the plan’s term rather than pay out a lump sum. 

Thus, it can replace the primary breadwinner’s income for several years, dependent upon a particular client’s circumstances and, because of this, would usually be written on a level or basis or an index-linked basis designed to keep up with inflation. 

Summary

There’s an adage that says you can never have too much insurance. Indeed, many people have one or more of the different types of policy, and it would be wrong to think of Mortgage Protection Insurance as just an “either/or” choice. 

However, affordability plays a massive part in the real world, so whilst it would be fantastic to cover yourself for every potential opportunity, a good advisor will sit down with you and tailor the type of cover to be the most suitable combination to your family’s priority and budget.