Life Insurance Critical Illness Cover
How critical illness cover empowers you to spend your life policy money the way you want to.
Life insurance critical illness cover converts a life insurance policy into a product which will also mature into benefit upon diagnosis if you contract an illness or disability. This means instead of the money going to your family or estate, you have some say as to what happens to it.
Life insurance critical illness cover is a clever bolt-on to a normal life policy. You can always buy critical illness cover separately, but some persons choose to bolt on critical illness cover to their life policy- and it can be a clever thing to do. It means that instead of the money becoming available only upon your death, life insurance critical illness cover means the cash becomes available upon the diagnosis of a qualifying disease.
Classically, critical illness cover (also rather dramatically known as dread disease cover) has been sold as the chance to live your final years in comfort. But especially when tied to a life policy, it’s really a chance for you to be involved in how the lump sum income is spent before you actually die; and as such the main consumers of life insurance critical illness cover are families with children to think about, or a company’s key personnel- especially in small or family companies.
Equally, note that you will only get the payout in advance of death if the disease “qualifies”, i.e. is on the list of diseases you receive with the policy. Otherwise the policy again only matures on death.