Why opt for serious illness cover?

Some forms of insurance cover, such as critical illness and life, are relatively well known. What is arguably less well known is serious illness cover insurance.

Here is a brief overview:

  • critical illness cover provides financial reassurance in the event you were diagnosed as having a critical and possibly life-threatening condition;
  • of course, it is not only very grave illnesses that may rob you of your ability to work and earn money for yourself and your family – there are a whole range of conditions that may do so but which may or may not be defined as being critical;
  • this is the domain where serious illness cover operates – providing insurance support against the financial effects of a very wide range of serious conditions;
  • it differs from critical illness cover in several respects, including the fact that it will pay out multiple times whereas critical cover is typically a one-off payment cover;
  • it is also based upon the concept of severity and the amount it pays may be linked to the severity of your condition;
  • this cover also typically pays out on your diagnosis, whereas critical illness cover may have a qualifying period of a few days and weeks after diagnosis before it will typically pay out;
  • traditional forms of life insurance cover will typically not payout in the event of illness as they are covering a different form of risk, however, it may be possible to combine life insurance cover together with serious illness insurance to provide a broader-based protection;
  • there may be a significant difference in the illnesses that a policy may cover and it is important to think-through your requirements before finally selecting a policy;
  • remember also that all insurance will bring with it, terms and conditions – for example, you may find it difficult to obtain cover for an illness that you have already been diagnosed with (though multiple payments from a single policy may be payable once it is in force);
  • if you are ill, the last thing you may want on your mind is money troubles – that’s one reason why it may be advisable to find out more about serious illness cover.