Critical illness cover is one of the most popular and fastest growing insurance products available in the UK. This is shown by the fact that there was a 31% increase in the number of critical illness insurance policies sold between 2001 and 2003. What is Critical Illness Cover Critical illness insurance pays out a tax free lump sum to policy holders if they are diagnosed with a serious illness which is covered by their critical illness plan. Examples of serious illnesses covered by critical illness insurance policies include; strokes, heart attacks and cancer. Policyholders can use this money in any way that they wish such as for medical care or to cover living costs that they cannot otherwise meet owing to loss of income. Who Should Consider Critical Illness Cover Most people do not like to contemplate the fact that they might become seriously ill and assume that it will not happen to them. However, statistics demonstrate how widespread serious illness is and that we should face the fact that we might suffer from it at some point. For example, 100,000 people in the UK have strokes each year and almost 8,000 of them are under 55 years old. Of these, a third die within twelve months and another third, over spend the rest of their lives disabled. Furthermore, in the UK, 300,000 people have heart attacks each year and 80% of sufferers aged between 45 and 65 survive. Whilst over 30,000 women are diagnosed with breast cancer annually many of whom survive for a number of years but continue to need medical treatment. Given that so many people who are diagnosed with serious illnesses go on to survive but need ongoing medical treatment and often cannot continue working, critical illness insurance can provide a very welcome financial safety net. |
