Critical Illness Protection

Critical illness protection pays a one off lump sum if you are diagnosed with a qualifying critical illness covered during the term of the policy. The range of critical illnesses covered vary from company to company, so we recommend you read the key facts document before you apply for your critical illness policy. You can choose both the term of the policy and the level of cover.

Lump sum payment on medical events

Usually combined with life cover

Can add Total and Permanent Disablement (TPD) as a definition

Instant online quotes and applications, 24 hours a day

You can choose to fix your premiums so they never rise

Guaranteed to be better value than going direct to the insurance company

Commission rebated to you

Choice of over 20 insurance companies to compare

Lifebroker - specialist life insurance broker

The Facts Critical Illness Protection:

A serious illness, such as cancer or heart attack, affects one-in-four women and one-in-five men before retirement age. Critical illness insurance is designed to ease the financial pressures by paying a tax-free lump sum if you become seriously ill or totally disabled. You must normally survive at least one month after becoming critically ill, before the policy will pay out.

What it covers

Originaly known as dread disease cover, critical illness insurance pays benefits on the diagnosis of certain specified critical illnesses. The range of diseases covered has increased to more than 30, though contracts differ from one company to another.

All policies should cover seven core conditions. These are cancer, coronary artery bypass, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke. They will also pay out if a policyholder becomes permanently disabled as a result of injury or illness.

The details

Most providers allow people to take out cover between the ages of 17 and 70. It can be for a specified number of years - as long as your mortgage, for example - or for life. Or you can just take out a policy and keep it going for as long as you choose. When you buy a policy there will normally be a waiting period - typically three months - before you can make a claim.

If you want to take out cover, you should do it as soon as possible. The rise in claims and the cost of advances in medical technology have led many insurers to cut back on the conditions they cover, or to impose restrictions on what counts as a critical illness, while many have raised premiums by up to 50%. Premiums are expected to continue to rise as medical technology develops.

Getting covered

To take out critical illness cover you will need to complete a proposal form. You will be asked if members of your family have suffered major illnesses in the past. If they have, your policy may be rated, which means you will pay higher premiums or will not be covered for certain conditions.

You may need a medical before being accepted for cover, but this does not necessarily mean you will have to pay higher premiums. You pay more if you are a smoker.

Not all illnesses are covered. Some of the most common exclusions include HIV/Aids, drug misuse, self-inflicted injury and criminal acts.