Critical Illness Cover
What is Critical Illness Cover (CIC)?
Critical Illness Cover is a policy which pays out a lump sum in the event that you suffer critical illness.
What illnesses are covered by Critical Illness Cover (CIC)?
The illnesses covered varies quite considerably from company to company. With some companies, nearly forty illnesses are covered, and with others, it's a rather small number. The majority of claims come from heart attack, stroke, and cancer. And, so all policies will include those particular conditions. The more conditions that are covered, clearly, the better, but sometimes it will be a balance between looking at a very comprehensive policy, which covers virtually everything, and perhaps looking at a policy that doesn't cover quite as much, but may have a cheaper premium. So, in deciding which policy to take out, you need to look very carefully at what's covered, and decide what's important to you. But, as a general rule, because you just don't know what's going to happen, and if you've taken out one of these policies, it would be really annoying, to put it mildly, if you happen to suffer from an illness which was covered by a policy that somebody else offered, but not by your policy. So, in general, I'd say, go for the policy which has maximum cover.
Where can I get Critical Illness Cover (CIC) from?
The best places to buy Critical Illness Cover (CIC) will either be your mortgage broker or an independent financial adviser. The key thing is to make sure you're dealing with an adviser who can offer you a choice of policies for Critical Illness Cover, (CIC), from a reasonably large number of companies rather than somebody who only offers a policy from a single company, because clearly, in the latter case, it's unlikely that's going to be the best Critical Illness Cover (CIC) policy for you.
Is it a good idea to get Critical Illness Cover (CIC)?
The basic pro for Critical Illness Cover is that in the event that you suffer a serious illness which could well stop you working for a considerable time or perhaps indefinitely, you receive a lump sum which enables the mortgage to be paid off, and therefore takes a significant financial worry off you and your family. The main con really is that there's a monthly cost to be involved. The key question is to consider whether you feel that monthly cost is justified in relation to the risk. But, if you have a family to think about, then I think it's really important that you at least have either permanent health insurance, which will pay out directly monthly amount to enable you to pay the mortgage or Critical Illness Insurance so that either way if you have a serious illness you are covered.
