Critical Illness

The benefit payable under critical illness cover is a lump sum payable on the diagnosis of one of several specified diseases listed in the policy. A wide variety of life-threatening and permanently disabling diseases can be covered. Different providers offer cover against different diseases and conditions. There may be a requirement that you survive for a period of 28 days following the date of diagnosis for the policy to pay out, as the policy is intended to cover living expenses.

The proceeds from a critical illness policy could be used to:

• Pay off a debt (such as a mortgage)
• To provide an income if you are unable to continue working

Critical illness cover can be provided as a stand-alone policy or as an option on whole life, term assurance, or endowment policies. If you decide to purchase one of these combinations you should bear in mind that you will only be able to claim if you contract an illness, as defined in the terms of the policy, and you may lose the life cover element unless you have purchased additional life cover.