Critical Illness Coverage

By Author: Lecia Selbo
Total Articles: 49
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Many people have encountered Critical Illness Cover, or CIC, as an option on a life insurance policy, but CIC is a form of insurance in its own right which can be just as important, or more so, than a life insurance policy.

CIC has been around for some time, but retains a relatively low profile. In the past companies offered coverage for a wide range of different illness and not necessarily the ones that people most commonly suffered. Now, however, by law all policies must cover for cancer, heart attack, kidney failure, MS, stroke, organ transplant and heart bypass and many cover for a good lot more.

Additionally CIC policies can pay out for mental illnesses such as Alzheimers, or long term disabilities such as MS or the loss of a limb.

Critical illness cover pays out on the event of the diagnosis of a serious illness but it has the advantage that you can choose to structure the money into either one lump sum or to be paid over a series of months. The money has no conditions upon it and can be used for anything that the policyholder wishes.

CIC is particularly important for younger people who are ...
... the main earners in their household. A quarter of women and a fifth of men suffer serious illnesses before retirement age, and CIC can be vital for dealing with all the outstanding financial commitments of a household if the main earner cannot work due to illness.

It is also highly recommended for people who don''t have any dependents. Life insurance pays out on the event of the passing away of the policyholder, but because CIC pays out immediately it can be of greater advantage to someone with no dependents.

Having said that, the two policies do not have to be mutually exclusive. Having critical illness cover in no way impinges upon the financial protection of a life insurance policy, in fact, if you can afford to have the two it can be a very good idea.

Having someone suffer from a serious illness is traumatic for any family and critical illness cover cannot help with that. It does, however, offer financial support immediately, allowing the policyholder to focus all their attentions on recovering and not having to worry about keeping up to date with financial requirements. Lecia Selbo took out critical illness cover with Legal