Critical Illness Insurance

Critical illness insurance is a type of protection policy that normally pays a one-off cash sum following the diagnosis of a specified medical condition.

The illnesses covered and the definitions used vary between insurers. A diagnosis alone does not always guarantee that a claim will be accepted. The condition must usually meet the exact definition contained within the policy.

Critical illness insurance is commonly arranged alongside life insurance, although it may also be available as a separate policy.

When taking out critical illness cover, you select the amount of cover required and how long you want the policy to last. You then pay a monthly or annual premium to the insurer.

If you are diagnosed with one of the critical illnesses covered by your policy, you can submit a claim. The insurer will review the medical evidence to establish whether your condition meets its policy definition.

Some policies require you to survive for a specified period following diagnosis before a full payment can be made. The applicable period will be explained in the policy documentation.

If the claim is accepted, the insurer will normally pay the agreed lump sum. The money can usually be used in any way you choose.

The medical conditions covered depend on the insurer and the type of policy selected. Many policies provide cover for conditions such as:

• Certain types and stages of cancer
• Heart attacks of a specified severity
• Strokes resulting in specified symptoms
• Multiple sclerosis
• Certain forms of organ failure
• Major organ transplants
• Some forms of permanent disability
• Coronary artery bypass surgery
• Parkinson’s disease
• Motor neurone disease

This is not a complete list, and not every diagnosis will meet the insurer’s definition. For example, some less advanced cancers or conditions without specified symptoms may not be covered.

The number of conditions listed by an insurer should not be the only consideration when comparing policies. The quality and scope of the medical definitions can be equally important.

Critical illness policies can differ considerably in their medical definitions, additional benefits, exclusions and underwriting requirements.

A MortgageKey protection adviser can:

• Review your financial commitments
• Assess your existing workplace and personal cover
• Help calculate an appropriate level of protection
• Explain the different types of critical illness policy
• Compare cover from a range of insurers
• Explain important definitions and exclusions
• Help you complete your application accurately
• Review whether combined or separate cover may be appropriate

Our advisers will make a recommendation based on your circumstances, needs and budget.