Critical illness.
What is critical illness cover?
A critical illness plan is designed to pay out a lump sum on the diagnosis of certain specified illnesses. It is often added to a life assurance policy as an additional benefit but can also be a standalone plan.
Who is it for?
This type of plan is designed for those individuals or families whom want a lump sum if they are diagnosed with a serious illness. As an example of where this lump sum could be used is to repay a loan, mortgage, or perhaps pay for time off work. The lump sum could even be used to pay for any necessary alterations to your home.
The quality of cover and the illnesses covered can vary significantly between different providers. As advisers we can help you find the plan that best meets your requirements.
As with all insurance policies, conditions and exclusions will apply.
Another option is Family income benefit (critical illness)
What is family income benefit?
A Family Income Benefit (FIB) policy runs for a set time known as the term. If you suffer from a critical illness within this period, it pays out a regular tax-free income until the term ends. For wage earners worried about helping their family with day-to-day living costs in the event of a critical illness, family income benefit could be a solution as its designed to replace missing earnings.
Why you might want it
Household bills will always need to be paid. A sudden loss of income can make it tough to manage these and other expenses and this is where family income benefit can help to provide extra support.
If you have a young family, you might want cover to run until your children are grown up, using the income for everyday expenses or specific items such as school or university fees.
