Critical Illness Cover
Critical Illness Cover (CIC) provides a lump sum payment if the Policyholder is diagnosed with a specified critical illness during the term of the policy.
The purpose of this Cover is to offer financial protection in the event of a serious illness, helping Policyholders cope with the associated medical expenses and other financial challenges that may arise. We would offer this type of cover should a client have an outstanding mortgage, hold a financial responsibility, have a spouse or dependants, or ultimately just be in a position where the diagnosis of a critical illness impacts their ability to achieve their financial goals.
The specific illnesses covered can vary between insurance Providers, but they typically include conditions such as cancer, heart attack, stroke, and other major medical conditions. The policy will specify the list of critical illnesses that qualify for a payout.
Most Providers offer a core version and an enhanced version. We would always look to initially recommend a Providers “enhanced” CIC product. The reason for this is evidenced in our research report; statistically clients have a much wider level of cover with enhanced plans, which maximises the chances of a successful claim should a critical illness be diagnosed.
However, it may be prudent for a client to opt for a “core” product due to budgetary constraints. We have conducted research across multiple client demographics and filters which helps highlight how strong a Provider is in both its core and enhanced product offering. It’s also prudent to point out that some Providers have one product, and they score very well against the rest of the markets enhanced versions.
This is the beauty of professional independent advice as this level of expertise, support or range of products is not available through on-line comparison sites.
Other considerations to take into account when considering CIC are:
- Survival Period: Most policies have a survival period, which means the Policyholder must survive for a specified period (usually 28 days) after the diagnosis to be eligible for a payout.
- Cover Limits: There may be limits on the amount of cover provided, and the payout is typically a fixed sum agreed upon when the policy is purchased.
- Exclusions and Waiting Periods: Policies may have exclusions for pre-existing conditions, and there may be waiting periods before certain conditions are covered.
It is essential that all the above must be taken into account during the pre-sale stage and a good relationship with the Providers we work with ensures that our clients are in the best position to make a decision on their cover and Provider before the plan commences.
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