When Does Critical Illness Cover Payout?

Of course, when it comes to buying insurance cover for anything, we’re all different and that means to ensure the best chance of receiving a payout if the worst happens, it makes sense to seek expert advice. If you want to find out a little bit more about critical illness cover payouts this article aid you in doing so. Being such a wide type of cover, the term ‘critical illness’ can fit many variables, but just which ones will you receive a pay out?

If you seek an enquiry on Critical Illness Cover, be sure to contact our team at Peak Mortgages. We pride ourselves on providing protection advice for those most in need. We work alongside our clients, listening to your needs and requirements to offer the best solution available.

When Does Critical Illness Cover Payout?

Critical illness cover provides financial protection if you are diagnosed with a critical illness that stops you, or limits your ability to work. It pays out a lump sum to be used for numerous things. For example, to pay off your mortgage, replace lost income, ensure your family/dependents are looked after financially, or to pay for private medical treatment.

When you’re considering taking out critical illness cover which requires payment of regular monthly or annual premiums, the payout rates (i.e. the likelihood of being able to make a claim) can be an important part of your decision process.

That means it won’t necessarily payout if you’re diagnosed with a terminal illness that will shorten your life expectancy – although in some cases it will. But, critical illness cover will payout if you get an illness that you may recover from, with the right treatment. Each policy will differ slightly depending on the insurer you use.

However, the list of illnesses critical illness cover is designed for, and will most likely payout on, typically includes:

• Cancer
• Stroke
• Heart attack
• Parkinsons
• Multiple Sclerosis
• Heart valve replacement
• Angioplasty
• Benign brain tumour

This isn’t an exhaustive list. In most cases, receiving a diagnosis of one of these illnesses, then provided you fully disclosed all your details when taking out your policy, you should receive your critical illness cover payout.

Reasons For Critical Illness Cover Not Paying Out

Situations in which your critical illness cover might not payout, can include:

• Not filling out your initial paperwork correctly, leading to misinformation.
• If you failed to declare an existing illness, that could be considered a contributing factor to the critical illness diagnosis, when you took out the policy.

Whenever you take out an insurance policy, such as critical illness cover, seeking expert advice from qualified and experienced professionals, like those we work with, can be the difference between buying the right insurance and receiving a payout if required and having your claim refused due to a minor mistake in the initial application process. 

Working alongside our clients, Peak Mortgages will aid you in initial paperwork and cover all bases to ensure misinformation is at a minimum.