Critical illness cover is offered both stand-alone and as an add-on protection product. If required, pay-out is in the form of a tax-free lump sum. Pay-out is received upon diagnosis of a serious illness that prevents you from working. The list of serious illnesses may differ between providers, but may include certain cancers, strokes, and Alzheimer’s disease. Some exceptions may apply to the list, so it’s important to know what is covered by your policy. Your critical illness protection will not pay out in the event of your death, and terminal illnesses may not be covered.
One claim may be made through the duration of the cover term, after which the protection will cease. The pay-out is a tax-free lump sum which may be used to relieve financial pressures in any way. This could be used to pay off your mortgage, pay for medical equipment, replace lost income or for day-to-day expenses.
Benefits of critical illness cover
Covering living costs during serious illness
Whilst you may have some savings, depending on the duration of your illness, these may soon be depleted. Critical illness cover pay-outs can be used to cover the cost of daily living expenses, as well as mortgage payments whilst you’re unable to work.
Tax-free pay-out
When pay-out criteria are met, the lump sum you’ll receive is tax-free. This means no loss of pay-out – you’ll receive the full amount that you have paid premiums to gain.
Medically-required home adaptations
Depending on the serious illness you are diagnosed with, you may require home adaptations. These can be costly, but may be required. You may not have available savings to cover these unexpected costs.
Why you should opt for critical illness cover
Critical illness cover will help you cover day-to-day expenses if you’re unable to work due to serious illness. This can be especially important if you have dependents or immediate family relying on your income. Sick pay offered by your employer may be for a specific, restricted timeframe. Statutory Sick Pay may not be sufficient to cover your financial commitments. Whilst you may have some savings, these may not last long if you are unable to work due to sickness. Critical illness cover could ease financial burdens for yourself and your family, in these instances.
How Bell Mortgage Solutions can help
Those with a more complex medical history should ensure the critical illness cover you choose covers the elements you require. The Bell Mortgage Solutions team will consider your health and family medical history, along with financial factors. We’ll identify the most suitable protection policy for your needs and ensure you can make an informed choice.
Our team will assess with you the cover duration and how much you’d like as the pay-out lump sum. This information will be used to determine how much your monthly premiums for the cover will be.
Contact us to speak to a member of our team, and discuss your protection product needs.
Read the answers to our frequently asked questions about critical illness cover, here.
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