Is it Worth Taking out Critical Illness Cover?

Critical illness cover is a type of insurance that pays out a lump sum if you’re diagnosed with a serious illness that’s covered by the policy. But is it worth taking out critical illness cover in the UK? In this blog, we’ll explore the pros and cons of this type of insurance to help you decide if it’s right for you.

Are you looking for more information? Get in touch with Peak Mortgages today. 

What are the pros and cons?

Pros of Critical Illness Cover

1. Financial Protection

If you’re diagnosed with a serious illness, critical illness cover can provide valuable financial protection. The lump sum payment can help you cover the costs associated with your illness, such as bills, once in a lifetime trips (seriously!) and time off work.

1. Peace of Mind 

Knowing that you’re covered in the event of a serious illness can provide peace of mind. You can focus on your recovery without worrying about the financial impact of your illness.

1. Flexibility 

Critical illness cover can be tailored to your specific needs. You can choose the level of cover you want, and the illnesses you want to be covered for.

Cons of Critical Illness Cover

1. Cost

Critical illness cover can be expensive, especially if you have pre-existing medical conditions. The cost of the cover will depend on your age, health, and the level of cover you choose.

1. Limited Cover

Critical illness cover only pays out if you’re diagnosed with a specific illness that’s covered by the policy. Some policies may have exclusions, so it’s important to read the terms and conditions carefully. That’s where an advisor comes in who can explain the vast differences in which provider covers what illnesses. Heck, you can even cover your children.

1. Overlapping Cover

If you already have life insurance or other types of insurance that cover critical illnesses, you may not need to take out an additional policy.

Is it Worth Taking Out Critical Illness Cover?

Whether or not critical illness cover is worth it will depend on your individual circumstances. However, if you have a family history of serious illnesses, feel that you want a comprehensive safety net, or work in a high-risk job, you may decide that the peace of mind and financial protection that critical illness cover provides is worth the cost.

Ultimately, the decision to take out critical illness cover is a personal one that should be based on your individual circumstances and needs. If you’re considering taking out critical illness cover, it’s a good idea to speak to a professional who can help you determine the level of cover you need and find the right policy for you.

Are you looking for more information? Get in touch with Peak Mortgages today.