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General critical illness cover is offered by a number of different insurance companies and is designed to pay out a tax free lump sum in the event that you were to suffer from a serious illness. Upon a valid claim this lump sum is then available to you to do what you want with it. This may be to pay off your mortgage and/or debts, you may bank it and use it as a source of income for day to day living, you may have to make adaptations to your home. The list could be endless but the important message here is that there is no stipulation applied by the insurance company on what the money is to be used for. Basically, once the money is paid out to you it is yours and no-one can tell you how to spend it! This should help when asking do I need critical illness cover?
I need critical illness cover - Insurance & critical illness cover
Most insurance companies offering group critical illness cover also allow you the option of combining other protection policies with the life and critical illness plan. The most common of these is critical illness with life insurance. It can often be the case that a bundled product, such as general critical illness cover with life insurance, works out cheaper than purchasing the two plans separately. However, it is important to remember that the majority of critical illness with life insurance plans will only pay out once. Therefore, should you suffer a critical illness and make a valid claim the plan will cease to exist. So, if you were then unfortunate enough to later die several months later the bundled policy will not pay out again, to beneficiaries, as it would have paid out to you on the illness. But, by combining the two policies, you are guaranteeing that the plan will pay out whatever. This can be important as most group critical illness plans have a survival period. This is a length of time, normally about 14 days, during which a claim is not payable. Therefore, if you were to die during the survival period the critical illness plan would not pay out. But, if it you were to have a combined policy with life insurance it would then obviously still pay out as a death benefit. Hopefully this has answered the question do I need critical illness cover ?
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