It’s a sad fact of life that we all know someone who has suffered from cancer, a heart attack or a stroke. Often these illnesses can have a permanent effect on our ability to continue to work and support our families.
Critical illness insurance allows us to protect ourselves financially against the risk of a life-changing illness. On the diagnosis of a critical illness within the chosen term, a critical illness policy pays out a lump sum. This can help reduce any financial worry associated with the illness, allowing you to focus on more important issues such as recovery and spending valuable time with your family.
Who needs it?
Everyone who has financial commitments, including those who are only responsible for supporting themselves, should consider critical illness cover.
What conditions does critical illness insurance cover?
Each policy is different and covers a specified range of conditions, so you should read the small print on what conditions are covered and when the plan pays out, before you take out a plan. For example, in addition to only covering specified conditions, policies don’t usually pay out if you die within a short period after diagnosis (although life insurance, if you have it, would normally pay out in this situation).
Make sure you understand what conditions are covered and how the policy terms define each condition, as these will determine whether you have a valid claim. Although the vast majority of claims are accepted, a common reason for rejection is that the condition claimed for is not covered or that the definition of a condition set out in the policy is not met.
Making sound financial plans is important and the decisions you make can be life changing. If you need support, you may wish to speak to a financial adviser. If you do not have one, you can find one near you at www.unbiased.co.uk. Whatever advice service you choose, there will be a charge. The amount and payment terms will be explained to you by your adviser.
Retirement on the horizon? Find out what your options are.
Use our tool to find out what your pension might be worth when you retire.
Already have a pension with Aviva? Monitor it online at the touch of a button with MyAviva.