What is Critical illness?
Critical Illness Cover is designed to pay out a lump sum or monthly income if you’re diagnosed with a critical illness or become permanently disabled within your policy term.
Policies vary and can cover 50+ critical illnesses, including the most common reasons for claims such as cancer, heart attacks, strokes and multiple sclerosis. These account for 89% of claims on critical illness policies and are referred to as ’the big 4’. Critical illness contracts will also provide partial payments in the event of other less serious illnesses that may still require time off work to rehabilitate.
Things we think you should consider are:
- Waiver of premiums – If you’re too ill or too injured to work, Waiver of Premium means you won’t have to pay your premiums. Insurers waive your premiums if you’re incapacitated for longer than 26 weeks. Waiver of Premium will end when you reach the end of your term or policy max age.
- Additional support – something that can be overlooked, but some insurers offer that personal touch too. Whether it is a reassuring call from a nurse, a second medical opinion, bereavement counselling or hospitalisation Benefit. Having someone to speak to can lighten the emotional and financial burden.
- Total Permanent Disability – If you have an illness or injury that results in a permanent disability, Total Permanent Disability will pay out the sum assured. You’ll usually have to be incapacitated for at least 26 weeks before the insurer can establish whether the incapacity is permanent with most insurers.
- Children cover – something we hate to ever live through, unfortunately for insurers this is the 5th most claimed element of any critical illness contract. Having children’s cover allows your children to be covered from birth to the age of 22 with some insurers. If your child was to become critically ill, they would be covered just like the policyholder for a proportion of the sum assured.
“As with all insurance policies, conditions and exclusions will apply”