Understanding critical illness cover: what does it pay out?
What Does Critical Illness Cover Pay Out For?
Critical illness cover typically pays out a lump sum if you’re diagnosed with a serious illness that’s covered by your policy. The specific illnesses that are covered can vary depending on the policy, but they typically include:
- Cancer
- Heart Attack
- Stroke
- Multiple Sclerosis
- Alzheimer’s Disease
- Kidney Failure
- Major Organ Transplant
- Parkinson’s Disease
- Aorta Graft Surgery
- Benign Brain Tumour
- Coma
- Blindness
- Deafness
- Loss of Limbs
- Terminal Illness
How Does Critical Illness Cover Work?
When you take out a critical illness policy, you’ll pay a monthly premium to your insurance provider. If you’re diagnosed with a serious illness that’s covered by your policy, your insurance provider will pay out a lump sum. The amount of the payout will depend on the level of cover you’ve chosen, and it’s designed to help you cover the costs associated with your illness, such as medical bills and time off work.
It’s important to note that critical illness cover is not the same as life insurance. While life insurance pays out if you die, critical illness cover pays out if you’re diagnosed with a serious illness. You can take out both types of cover if you want to protect yourself and your family against both eventualities.
Critical illness cover can provide valuable financial protection if you’re diagnosed with a serious illness. It pays out a lump sum that you can use to cover the costs associated with your illness, such as medical bills and time off work. The illnesses covered can vary depending on the policy, so it’s important to read the terms and conditions carefully. If you’re considering taking out critical illness cover, it’s a good idea to seek advice from a professional to ensure that you’re choosing the right level of cover for your needs.
We hope that our blog gave you some valuable advice on what critical illness covers and how it works. Looking for further advice? Get in touch with Peak Mortgages today.