Critical Illness

Critical illness is essential if you were to consider how many peoples lives are adversely affected due to illnesses such as cancer, heart disease and strokes.

Ownership of a critical illness plan would mean that a tax free lump sum would be paid out on the diagnosis specified in the plans list of serious illnesses. There are two types of plans available. A stand alone critical illness plan will only pay out providing the insured survives a minimum period of time, typically 28 days after diagnosis. However a combined plan, which includes life assurance as well, would pay out on either a diagnosis of a critical illness or an untimely death.

Should you be diagnosed with a critical illness the payment of a lump sum may be used to adapt your home if you have had a heart attack or stroke, or even pay off an existing mortgage. Another example is where the lump sum could be used to purchase life saving drugs which are not available on the NHS.

Many critical illness plans also include free of charge cover for children, normally up to 25% of the benefit, limited to £20,000. This benefit would be payable if the actual child was diagnosed with a critical illness.

The list of critical illnesses covered will vary from one provider to another, but they all include a list of common conditions agreed by the Association of British Insurers (ABI). Some more comprehensive plans will cover additional conditions as well. therefore it is extremely important that you talk to your adviser as to which he feels is the most important level of cover.

With life assurance the premium is normally the deciding factor in choosing which provider, however with critical illness policies the decision to choose one provider in preference to another is not as simple as cost alone. Fehnert Financial Services Limited can guide you to the most appropriate provider within your financial budget.

For more information and advice on this matter please contact us.