Critical Illness Cover

Critical Illness

New Mortgage Finder explains the key features of Critical Illness protection in relation to mortgage protection.

Imagine if the unthinkable happens and you are diagnosed with a serious or critical illness or become permanently disabled without any health care insurance. Paying your bills will be the last of your worries, but something that you'll need to cope with.

Although the State might provide some financial support, it's unlikely to cover more than the basics. You may have to dip into savings or give up some valuable possessions.

Health Lump Sum Payment

Critical Illness protection Cover offers you peace of mind by providing you with a lump sum to help you and your family through a difficult time. The money could pay for extra costs, such as alternative treatment or home modification should you be diagnosed as having one of the specified critical illnesses, it can alsobe used to payoff all or part of your mortgage.

The payment will be paid to you only after a period of 28 days.

The plan does not have a cash-in value at any time.

The premiums you pay under this policy might increase whilst the policy remains in force.

For more information on this policy please read the Key Features document via the link under related information different types of health or death insurance are available:

'Level' - a lump sum is payable on the event of a specific Illness. This lump sum remains constant throughout the period of the insurance term. This is the most common form of critical Illness insurance.

'Decreasing' - a lump sum is payable on the event of a specific Illness. This lump sum decreases by a fixed amount during the period of the term, decreasing to nil by the end of the insured period. This form of cover is usually used for mortgages or other loans where the amount owed decreases year on year.

Single and joint life plans are available. A single life plan insures one life. A joint life first Illness plan insures two lives but only pays on the Claim.

Premiums will depend on the sum to be insured, the period of insurance cover, your age, your sex and whether you smoke or not. A non smoker is usually defined as someone who has not smoked for at least twelve months. Premiums for women are generally lower as on average they tend to live longer.

Additional options can be added to increase the level of cover, although this in turn increases the premiums.

Medicals are not normally required, although in some circumstances a report may be required from your doctor. Always complete any life insurance application honestly as failure to do so will result in the insurer refusing to pay on the event of death.

Counselling: Counselling may be included to help your family cope with your Illness

Guaranteed Premiums: Guaranteed premiums ensure that the premiums remain the same throughout the duration of the policy term. Alternatively 'reviewable premiums' require the premiums to be reviewed periodically, typically every five years, meaning that premiums can increase dramatically following review.

Permanent Total Disability: If this is not included you will be unable to claim if an illness or accident leaves you unable to work. Also, check the definition of 'permanent total disability'. Some policies define it as being unable to perform any job whilst others define it as being unable to continue in your previous occupation. The latter is more favourable.

Survival Period: Most policies require you to survive for a specified period following a critical illness diagnosis, typically 14 days to 3 months. The shorter this required period the better.

Children: Some policies will pay out if your children are diagnosed with a critical illness.