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.