According to the Association of British Insurers (ABI), every year 1 million workers in the UK unexpectedly find themselves unable to work because of injury or illness. In situations like this it is important to know that you and your family are protected. Here, Acumen Financial discuss critical illness cover and its importance.
Definition of critical illness cover
Critical illness cover is an insurance policy that covers individuals against serious illness. The policy works by paying out a one-off, tax free payment in order to help with mortgage or rent payments, alterations to the home or debt payments. After the insurance company has paid out the one-off lump sum of money, the policy will end.
Types of critical illness cover
The type of critical illness cover will depend on the insurance company and their individual policies. The types of critical injuries or illnesses that are covered are likely to change depending on the policy.
Common examples of critical illnesses include:
- Heart attack.
- Types and stages of cancer.
- Conditions such as multiple sclerosis.
Permanent disabilities are also likely to be covered in insurance policies. However, it is important to check this with the insurance company before taking out a policy.
Benefits of critical illness cover
For many, it is impossible to adequately save for worst case scenarios. The thought of paying off bills, a mortgage, rent or medical costs without an employee sickness package can be daunting. In cases such as these, critical illness cover is vital.
Commonly, state benefits are not enough to act as a replacement income, with average earnings ranging between £70-£100 a week, depending on individual circumstances. This is usually not enough to keep a household functioning, meaning critical illness cover can become a huge help.
How can Acumen help?
At Acumen, we have a team of expert financial advisors who can advise you on the benefits of critical illness cover. For more information about the types of critical illness insurance, contact us today by calling 0800 170 7009 or email firstname.lastname@example.org.