Critical Illness Cover, Critical Or An Unnecessary Expense?

It is one of those things people do not talk about, unless they are in the process of getting life insurance advice or shopping around for life insurance quotes. But your life is more than simply breathing. So the worst does not have to happen for you to fall into financial difficulties as a result of health related circumstances. Without getting too macabre, there are many conditions that can stop you in your tracks. And no matter how well prepared you are, a year or so out of work is not going to make things easier for anyone.

Do you have a life insurance policy? Do you know that it is unlikely to pay out should you become too ill to work? It is advisable to research your current deal to establish if it includes critical illness cover. If it does not, most policies do offer it as an addition to your outstanding policy. The long term benefits of paying that little bit extra per month can make things a lot easier for your dependents. Statistics by BUPA, one of the UKs most established private health care companies, highlighted that one in four people develop a serious health problem between the age of 30 and 60. This is a surprisingly high number of individuals, and perhaps something to spur you on to adapting your policy?

As with most products offered by financial services lenders, critical illness policies will not protect you against every possible effect of varying conditions. While you will be covered against the more common life changing illnesses, full coverage cannot be guaranteed. To deal with this level of uncertainty, it is best to obtain financial advice in order to find the most suitable policy for you.

By now you are probably starting to understand why this is a complex consideration for anyone after health insurance. It is hard to imagine why someone would want to protect themselves, and their loved ones in the event of death, if they still run the risk of losing an income, and putting those dependents in an equally catastrophic scenario, if they ever fall ill. Lecture over: here are some key things to bear in mind.

Just 25 per cent of the British public who have life insurance, according to prudential, buy on price alone. But even if the person applying for a policy is astute, according to fellow insurer Scottish Provident, the UK as a whole, is not. A recent study by the provider found that six Britons in ten have no protection, with just 35 per cent taking out life cover, and only 13 per cent opting for a policy that pays in the event of a critical illness. These are uncomfortable statistics to read when you consider how much debt must therefore exist without any protection.

However, it is not down to pure ignorance of the population that these statistics are so low. Often, a majority want to look into such policies, but who do not fully understand what is on offer and do not know where to get impartial advice. In fact, back in 2006, the Financial Services Authority warned that clearer and more readily available information is needed for the consumer. Today, the internet provides a huge amount of information if you feel that you need further clarity on the issue of critical illness cover

In the hope to clarify the basics of critical illness cover, here are some facts surrounding the most general forms of cover. The big boys of critical illnesses such as heart disease, cancers, strokes and diseases such as Parkinsons and Alzheimers are usually automatically covered in a critical illness cover. When considering that one in three Brits are likely to develop cancer in their lifetime, having cover for such an eventuality seems a sensible option. Although, the one drawback of such policies is that, at the risk of sounding morbid, an individual has to survive around a fortnight following their initial diagnosis before they can actually receive a full pay out. It is imperative that you take this into consideration when applying for cover.

Most providers have policies that cover over 20 illnesses, for example Friends Provident covers a massive 37 different illnesses. The complications really emerge though regarding illnesses that can be critical but most people can live a reasonably normal life with. Take Diabetes, most suffers can lead a relatively normal life for years and years. Though, there are instances where the disease can lead on to other health complications such as problems with their bodys extremities. Now if someone was to lose the use of their feet, you would consider it a critical illness that should be covered as it would undoubtedly prevent them working. And most policies do cover this, if the loss of extremities was a result of anything other than diabetes. Yes that is right, if someone was to lose their feet and hands as a result of diabetes, it would not be insurable. As the fifth most common cause of death across the world, this is a shocking fact.

While this may seem an unfair system, the financial services do have to draw a line somewhere. And as I am sure this will frustrate many people within the UK, diabetes is just one example in a long list of those that do not actually qualify for insurance cover. But should this stop you from obtaining critical illness cover? At the end of the day, it depends entirely on your personal circumstance. If you already have stand alone life insurance in place, then surely it would make sense to add the critical illness feature? Or, if you have neither of these, perhaps 2011 should be the year where you at least look into the process?

So how critical is critical illness? Well it is, as with most things, a personal matter, there is by no means a definitive answer. It is probably worth looking in to mind you. Gain some financial advice, do a bit of your own research in terms of your current financial situation, your current health and your family medical history and you never know, obtaining critical illness cover could well be the best decision you have ever made.