This insurance pays out on the diagnosis of certain specified critical illnesses. Most policies will pay out following major illness for example heart disease, a stroke, renal failure, cancer, paralysis, or a major organ transplant and coronary artery bypass surgery.
The money is usually paid out in a lump sum and is tax-free.
Single people need critical illness insurance to prevent them becoming dependent on friends and family. Dual-income couples need it to prevent them suffering a financial blow should one partner have to stop work.
You can only claim once on a critical illness policy.
Guidance
1. Type of policy
From income and lump sum to level, level and decreasing there are dozens of options.
2. Number of conditions
Make sure to read exactly what you are covered for. Some policies cover just a few conditions, some cover nearly 40.
3. Children's cover
Now one of the highest areas of claims but not all policies automatically cover your children.
Mortgage Saints Ltd is an appointed representative of Home of Choice Ltd which is authorised and regulated by the Financial Services Authority.
