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Tuesday, October 27, 2020

6 Things to Consider When Buying Critical Illness Insurance

Posted by admin on February 1, 2013

1. Who Is Offering the Cover?

Though many banks and building societies will try and sell you critical illness cover when you take out a new mortgage or change your personal circumstances, such organisations may not be able to offer you the best deal. Don’t feel pressured into making a decision on the spot. Shop around and try to find the policy that provides you with the greatest level of protection at the best price. An independent life insurance broker would be the best person to help you shop around and compare quotes.

critical illness insurance

critical illness insurance

Remember any credible organisation that offers critical illness or any form of protection insurance should be authorised by the Financial Services Authority. So make sure any company you place your trust in has the relevant accreditations.

2. Is It Really Critical Illness Insurance That You Need?

If you are looking for an insurance policy that will pay out a cash lump sum if you develop a serious illness or disability then critical illness insurance is the policy for you. However, if you are looking for cover that will provide a regular monthly income to compensate when you are unable to work then an income protection policy will probably be more appropriate.

3. Do You Require Life Cover?

Traditionally critical illness protection does expire on the death of the policyholder, however there a limited number of products that can include a life cover buy back option. Such policies are traditionally more expensive and difficult to manage and it may therefore be more appropriate to take out a separate life policy which may be able to provide greater cover at a lower cost.

4. Do You Already Have Critical Illness Cover?

It may seem strange not to know if you have critical illness insurance, after all who wouldn’t remember taking out such a policy? But many people are provided with protection by their employer as part of their benefits package and without checking the finer detail of your employment contract this may be something that is overlooked.

Before taking out any insurance policy, check the level of cover that is provided by your employer. Even if the terms do not exactly meet your needs, you may be able to adapt the policy or add on extra benefits which can cost you far less than taking out a whole new policy.

5. Have You Disclosed All Relevant Information?

One of the key reasons that critical illness claims are disputed by the provider is because full medical information was not disclosed during the application process. It is a misconception that hiding a previous illness will reduce the cost of critical illness insurance. It may lower the price of the premiums, but they could all be a complete waste if your insurance company refuses to pay out because something was omitted.

6. Changing Your Mind

If you read this and realise that you have just taken out the wrong type of cover for you, then don’t worry. Most Critical Illness policies come with a cooling off period which enables you to cancel the policy without any financial loss. The timing of such a period can fluctuate but is usually 14 days after signing the contract so make sure you act quickly.

Author Bio: David Richardson is an insurance adviser working for who are a UK based independent insurance broker. Visit their website at for further information about critical illness insurance and to compare quotes online.

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