What is Critical Illness Cover?

Critical Illness Insurance or Critical Illness Cover is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy.

The contract terms contain specific rules that define when a diagnosis of a critical illness is considered valid. It may state that the diagnosis need be made by a physician who specialises in that illness or condition, or it may name specific tests that will confirm the diagnosis. The policy may require the policyholder to survive a minimum number of days (the survival period) from when the illness was first diagnosed.

The survival period used varies from company to company, however, 14 days is the most typical survival period used.

Conditions Covered?

The schedule of insured illnesses varies between insurance companies.

Examples of other conditions that might be covered include:

  • Cancer
  • Heart attack
  • Stroke
  • Alzheimer’s
  • Blindness
  • Deafness
  • Kidney failure
  • A major organ transplant
  • Multiple sclerosis
  • HIV/AIDS contracted by blood transfusion or during an operation
  • Parkinson’s disease
  • Paralysis of limb
  • Terminal illness

Due to the fact that the incidence of a condition may decrease over time and both the diagnosis and treatment may improve over time, the financial need to cover some illnesses deemed critical a decade ago are no longer deemed necessary today.

Likewise, some of the conditions covered today may no longer be needed a decade or so in the future.

Why would you want Critical Illness Cover?

The finances received could be used to:

    • Pay the mortgage balance off
    • Pay for the costs of the care and treatment
    • Pay for recuperation aids
    • Replace any lost income due to a decreasing ability to earn
    • Fund for a change in lifestyle.

This insurance can provide financial protection to the policyholder or their dependents on the repayment of a mortgage due to the policyholder contracting a critical illness condition or on the death of the policyholder.

If you contact us you will be put straight through to our experienced team, who will help you along every step of the way. We will go through all of the options and make sure that you are fully covered and have the best deal that we can provide for you.

Ready to Talk