What are the premium options when taking out a Critical Illness Policy?
All insurance providers are slightly different in terms of what you would be covered but the following is what you could typically expect.
Alzheimer’s disease (before the age of 65), Traumatic Head Injury, Aorta Graft Surgery, Third Degree Burns, Aplastic Anaemia, Stroke, Bacterial Meningitis, Respiratory Failure, Benign Brain Tumour, Parkinson’s Disease, Blindness, Paralysis of limbs, Cancer, Open Heart Surgery, Cardiomyopathy, Multiple Sclerosis, Chronic Rheumatoid Arthritis, Motor Neurone Disease, Deafness, Major Organ Transplant, Heart Attack, Loss of Speech or Independence, HIV Infection (caught from blood transfusion), Liver Failure, Kidney Failure or Insulin Dependent Diabetes Mellitus.
It has to be noted that some types of cancers are not covered and cover is dependent on the provider.
When taking out a critical illness policy you choose the amount you wish to be covered for, the ore you wish to be covered by the more the monthly premiums will be. So if you were to suffer from one of the illnesses above then the policy would then pay out the lump sum agreed. However it does depend on whether you chose a level term policy or a mortgage protection policy. If you were to choose the level term policy this would mean that the benefit amount (sum assured) would stay the same throughout the term of the policy however if you were to choose a mortgage protection policy the benefit amount would decrease in line with you mortgage therefore the benefit amount would reduce on a yearly basis.
It is also good to note that most providers will cover your children up to the age of 18 at no extra cost. When your children turn 18 they could then take out their own critical illness policy. Your children would be covered for all of the above illnesses and operations apart from insulin dependent diabetes mellitus and would only be covered for the benefit amount of £25,000 or up to the maximum of twenty five percent of the policy amount.Critical care cover is that extra bit of financial help that covers the grey areas associated with a medical care policy. What will finally be covered for you in the policy will be dependent upon your service provider. It is therefore necessary that you take all the time you need to look through the various options and get yourself a policy that will really help you in the case of an emergency medical need.
Each service provider will have a clear cut policy on what they cover. This however, differs from one service provider to another. But, what you can typically expect is the following:
- Alzheimer’s disease (this is if it affects you before you reach the age of 65 years)
- A Traumatic Head Injury
- Graft Surgery of the Aorta
- Third Degree Burns
- Aplastic Anaemia
- Stroke
- Bacterial Meningitis
- Respiratory Failure
- Benign Brain Tumour
- Parkinson’s Disease
- Blindness
- Paralysis of any or all of the limbs
- Open Heart Surgery
- Cardiomyopathy
- Multiple Sclerosis
- Chronic Rheumatoid Arthritis
- Motor Neurone Disease
- Loss of hearing
- Major Organ Transplant
- Heart Attack
- Loss of Speech or capacity to look after one’s self
- HIV Infection (this is only if it is proven to have been from a blood transfusion)
- Liver Failure
- Kidney Failure
- Insulin Dependent Diabetes Mellitus.
- Cancer
One good aspect about these policies is that children are insured up to the age of 18 years. This is done complimentary. As soon as your children turn 18 though, they will have to invest in a critical care policy of their own. Children too, are covered under all the same categories. In some cases however, there is an exception for diabetes mellitus. When it comes to cancer, you have to understand that each service provider only covers certain types of cancers. There are many that do not come under the ambit of a critical care policy. Be very clear with your provider on what the exceptions are.
When you decide to invest in a critical care policy, you have the freedom to decide on the amount that you would like paid to. This will determine your monthly premiums. What happens is – if you are diagnosed with any of the illnesses covered in your policy, then your provider will release into your account the amount of money you had pre-determined. This lump sum will be given once you cross the survival period which is specified for each of the illnesses.