Pros and Cons of Critical Illness Cover

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When it comes to critical illness cover, there can be a lot of advantages and disadvantages that are worth considering. As there are so many different insurance providers out there, they all have their different terms, payouts, and conditions. With that being said, it’s worth knowing what advantages and disadvantages there are to having critical illness cover and whether you yourself, should get it.

What Is Critical Illness Cover?

When you’re critically ill, it’s not always possible to manage payments that might be due, like your mortgage or other household outgoings. With that being said, it’s important to look at what critical illness cover can offer you. With critical illness insurance cover, it can help by providing a lump sum payout should you be diagnosed with a serious condition or illness. This can be useful and a weight off your mind knowing that you’re covered during this difficult time.

Any critical illness can be hard enough to deal with without having to worry about money, so it’s worth considering this policy at the very least.

The Advantages & Disadvantages Of Critical Illness Cover

When weighing up anything in life, it’s important to know the pros and cons. So with that in mind, let’s start with the benefits. If you were to fall ill, then there’s certainly financial benefits of the insurance. A key benefit is the lump sum of money that you’d get, and this can be used in any way you’d like. It could be paying off your mortgage, so your family don’t need to worry about it or taking a trip away with the family. You could use the funds to generate more income, and the rate of payout is high when it comes to making a claim. According to the Association of British Insurers, out of 15,464 claims made in 2016, 92.2% of them were paid out. You can also, in some cases, be able to cover your children in this too.

In terms of the disadvantages, there are some factors worth considering. One example is that the policy might not cover every condition or illness that’s out there. These conditions will be covered differently for each lender, and so it’s important to know what are included in terms of illnesses and what you might need to buy as add-ons to the policy itself. You should check the terms and conditions thoroughly before signing, just to make sure. The amount you’re covered for and what you pay in premiums may also vary, and it could be something that’s too costly for you to pay right now. It’s worth knowing what it is that’s making the premiums so expensive as it might be something you may or may not be able to change.

Seeking Critical Illness Cover

If you’re after critical illness cover, then it’s worth looking at a life insurance comparison to see which ones are worth it and whether it’s something that’s right for you. 

As much as it can be useful, you need to be realistic in what you can afford and what is you need.