Should You Get Critical Illness Cover?

Benefits of a Critical Illness Policy: Reasons You Should Get One

In today’s world, it is difficult to predict what will happen. So many things could befall you & your family at any given moment. However, one thing that is for sure is the fact that life can change in an instant. In these cases, having a critical illness policy can make all the difference. Read on to learn more about the benefits of a necessary illness policy & why it might be suitable for your situation!
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Think about this for a moment,

Most people don’t realize they need this type of coverage until it is too late because there aren’t any warning signs before contracting an ailment such as cancer, heart attack, diabetes, or stroke. It is essential to find out as much information about a disease as all medical conditions because rates increase due to health considerations making ordinary life insurance unaffordable. Also, when buying life insurance, it’s crucial to compare rates and coverage of various policies.

Why Get a Critical Illness Insurance Policy?

If you’re struggling to manage your health insurance, critical illness cover1 may be the answer. This type of policy will pay out a lump sum if you have a life-threatening qualifying diagnosis. It’s an excellent way to protect yourself and your family from financial hardship if something catastrophic happens. But is it worth the cost?

Let’s take a closer look:


  • Living benefits can be paid out to the insured’s spouse, child, or parent if they live in your home and pass away.
  • You guarantee that you will not have to worry about being denied coverage by an insurance company when it comes time for treatment.
  • Insurance companies offer different levels of coverage with premiums ranging anywhere between 100-1000 per month depending on your risk level and the age of the person getting insured.
  • The plan allows for coverage until age 75 so long as there is no diagnosis made before then. This means that even if you’re diagnosed with cancer at 50 years old, the policy could cover hospitalization through chemotherapy treatments without any problems.


  • You may be paying more for your premiums than what it would cost to buy an individual disability policy or long-term care insurance.
  • The coverage period is shorter, and the pay-out amount per day of hospitalization will also be lower with this type of plan instead of others that offer lifetime benefits.
  • There is no coverage for any medical expenses incurred before age 65 and none after retirement (you must have retired from your employer). It means if you’re diagnosed at 64 years old and retire two years later, then the policy won’t provide anything in terms of benefits.
  • Suppose you are still working when applying for this type of insurance plan under an employer group health insurance plan on or off-site. In that case, there may be waiting periods associated with eligibility.

Selecting the Right Policy

The best way to find a policy that offers good value for money is by comparing policies with similar benefits and features. It will involve considering how much cover you need, what illnesses or accidents are covered, whether the total lump sum pay-out is paid upfront or monthly after diagnosis, or any excess payment required if an illness claim is made during your insurance time.

On the other hand,

Please take note that this varies between different providers. Some plans may also be exclusions, which mean specific ailments aren’t covered under them, such as types of cancer being excluded from critical illness policies issued by some providers.

In addition, when considering your level of cover and how much monthly cost will be required to buy sufficient protection, you need to think about what would happen if both members of a couple were diagnosed with an illness like Parkinson’s disease¹ or Alzheimer’s disease at different times during their time insured under one plan.

How Much Insurance Should You Get?

The amount of cover you need will depend on your situation. For example, a married couple in their fifties with two children and a house might want to get £500,000 worth of cover, while someone who is single and living alone would be tempted by the lower premiums offered for a smaller sum.

You see:

The level of protection required will also depend on what other assets people have available to them, such as investments or pension funds.

Application of Critical Illness Cover

The application for a critical illness cover typically goes through the same process as any other insurance plan2.

Here’s how:

First, you will fill out an application form and present some of your personal information so that you can be appropriately assessed against medical history factors such as age, gender, lifestyle, etc. Once this is done and accepted by the insurer, payment arrangements are made directly to pay monthly premiums on time each month until either settlement or cancellation date comes around.

When Should You Get Critical Illness Cover?

When you are young, it is a good idea to get critical illness cover because your chances of getting sick and dying at that age are much lower than they will be in your forties or fifties.


If you have kids, then it’s also wise to invest in critical illness insurance coverage because children can die from illnesses such as cancer and heart disease just like adults do.

Common Questions

What Happens if I Don't Have Insurance?

Do Critical Illness Policies Differ by Provider?

Why Should I Buy Critical Illness Insurance if I Have No Dependents?

Should I Get Additional or Combined Critical Illness Cover?

In Conclusion

In a nutshell:

Critical illness insurance should be considered part of your overall financial planning but may not fit within the budget of some due to the high premiums. But don’t be put off.

Some cover is better than no cover, and by reducing the sum assured or the term of the policy, you can reduce the premium. Always seek independent financial advice or use a specialist protection adviser and check the policy details thoroughly before purchasing.


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