Critical Illness Cover (CIC)

What is Critical Illness Cover?

You don't have to die to benefit from a Critical Illness insurance policy. This type of cover is designed to pay out a lump sum in the event that you suffer from a certain type of critical illness or if you have to undergo certain types of surgery as specified in the policy terms and conditions.

Critical Illness insurance is designed to help with the extra costs incurred as a result of contracting a particular condition. It is important to note that the policy only pays out if you contract one of a defined list of illnesses specified in your policy. It is important to remember that if you contract an illness which is not covered by your policy you will not receive a payout. These policies differ in what they cover, so you should always check the policy wording.

What does a Critical Illness Policy cover?

The conditions covered by a critical illness policy will depend on the insurer and the type of cover that is taken out. You can generally expect conditions to be those such as:

Heart attacks
Strokes
Some types of cancer

Do I need Critical Illness Cover?

Critical illness cover can offer valuable financial support if you become ill and are forced to stop working. The cover can be especially helpful for:

Mortgage payments
Lost earnings
Household bills
Private medical treatment

How much cover you should have depends on your circumstances.

What will effect the size of my premium?

The size of your insurance premium will depend on your:

Age
Health & Medical History
Occupation
Lifestyle
Smoker Status
Type & amount of cover
How long you need cover for

It is important to remember that premiums could also be more expensive if you have a history of a particular illness in your family or the illness may be excluded from the cover.

Do I take out Critical Illness cover separately to other Life Insurance?

Some policies will offer critical illness combined with life insurance. Again, care needs to be taken, as once the policy has paid out, cover will no longer be available. In other words, if the policy pays out for a critical illness then there will be no life cover remaining. Furthermore, if the illness has been a serious one then it may be that replacement life insurance cannot be obtained due to health reasons.

If you do decide on one of these “bundled policies” make sure it covers both your critical illness and life insurance needs. Even though it may prove slightly more expensive, it may be worth considering separate policies for these different types of cover.