Financial Planning

We do not always get the time to think about our health. But our health remains precious and vitally important to everything we do. Yet we often take it for granted that we will always have the best of health. The fact is, we do not know what the future has in store for us. As a matter of concern, you should get prepared to accept that you could probably fall critically ill at some time in the future. Consequently, if you shoulder the responsibility of a whole family, you could start to think over a critical illness policy. Let’s see how critical illness insurance can help you and your family.

Critical illness insurance may become useful for you during your worse days. Critical illness cover can award you a lump sum if you are diagnosed of one of the diseases considered as critical illness. On the other hand, if the disease does not feature among those already defined, you may encounter some problems getting the payout.

Nobody wants to get stuck up on a wheelchair for the rest of his life. The impact on your family can be hard if you happen to fall critically ill. Your critical illness insurance will normally make the payment 28 days after your claim provided you are still alive. Thus members of your family can regain confidence. They will be eased of some of the financial pressures.

Thanks to critical illness insurance you can afford to pay your medical fees. You could also complete your mortgage payment or make necessary arrangements to suit your changing need. If your critical illness has rendered you invalid, you may also want to renovate your house to accommodate your disability. You could have a new vehicle which will adapt to your needs. Otherwise you could use the lump sum awarded by your critical illness insurance to pay yourself and your family a long break for your rehabilitation.

Generally, critical illness insurance pays you the amount you asked for. Critical illness insurance allows you to use the money as you want. Thus your children could also be taken care of. You could therefore pay for their educational fees or any other debts that remains. Like a pillar that stands firm, critical illness insurance can also stand firm to provide you support when you most need it. Your children could also take a lesson out of this situation. They might consider taking a critical illness insurance once they grow up.

The bottom line is, we need money, in good times or in times of critical illness. State Benefits alone will probably not cover all your needs. So you need something on the side and there is probably fewer better ways of saving for hard times than investing in a good critical illness policy now.

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The sale of critical illness cover has been considerable in the UK and Ireland during the late 1990’s. For many companies, critical illness insurance may have been a source of revenue profits. Critical illness cover was mainly sold to young adults as premium rates at an early age carried affordable rates. People preferred critical illness insurance as it paid direct benefits if compared to income protection or mortgage protection insurance.

Consequently two types of critical illness cover exist: Accelerated and Standalone. The accelerated critical illness cover was a combined policy. For example, critical illness insurance with mortgage. As an overall analysis, the accelerated critical illness policy sales had been higher than the standalone policy down the years.

Since its arrival in the UK during the late 1980’s critical illness insurance may have given the insurance market a new perspective. Critical illness insurance sales may have boosted and in 1997 ABI (Association of British Insurers) revealed around 579,000 policies sold in the UK. The fact that not all insurance companies show their data to the ABI, the total critical illness policy sales could have been approximately 700,000. This figure demonstrates a 30 percent growth if compared to that of the year 1996 and around 68 percent growth since the year 1995.

Moreover, critical illness insurance can be described as a simple product. The potential customers are presented with the critical illness policy documents and showed what diseases would be covered. Upon diagnosis of one of these diseases, a tax free lump sum could be awarded as a single payment of the full sum insured. Critical illness insurance covered seven core illnesses. As time passed, the range of insurance companies increased and competition grew over the insurance market. Hence the number of illnesses covered expanded. According to the ABI, globally, critical illness insurance may actually cover up to 30 diseases. As an example, diseases such as Angioplasty and Aplastic Anaemia may have been added to the list of critical illnesses.

As explained earlier, critical illness insurance may be sold in two formats: accelerated and standalone. The standalone critical illness cover provides direct benefits also, but the insured person has to live for about 30 days so that the claim becomes successful. On the other hand, many people prefer the accelerated critical illness cover, especially with mortgage. As soon as the insured person is diagnosed with a critical illness the insurance may have to pay out the lump sum without waiting. It is important to note that mortgage related critical illness cover may have produced a take up rate of 60 percent over any other form of critical illness policies sold.

The duration of cover tend to vary according to the type of policy. It can be yearly renewable and can also be ongoing up to 40 years. Many companies may offer fully guaranteed rates of critical illness products in the UK. However, the majority of sales in the UK remain as riders to critical illness insurance rather than a standalone policy.

Whilst it is true that people live longer nowadays than years ago, it is equally true that we are more likely to suffer from a critical illness before we actually die. A Critical illness cover aims to pay a tax-free lump sum when someone insured claims for his critical illness. Actually critical illness insurance is one of the most bought insurance policies.

The risk in today’s daily tasks and among hard working people, mainly in England has elevated. People have started to work much longer hours thus leading to a stressful environment and lifestyle. A critical illness such as heart disease could be the most common reason to bring down the health of these people. Now think of you. What is the type of work you do? How can it affect you in a long term basis? These are questions that you should ask yourself. If you think that your lifestyle exposes you to health risks and complications, you might want to think of a critical illness policy.

Now assume you happen to suffer from a critical illness. What will be the effect on your family and children? You will not be able to attend work. Your income that used to pay for the continuous running of your house may be lost. More important, your loved ones start to fear losing you. Normally during such cases, a tense environment carves itself in. Your critical illness may drive the feeling of insecurity among members of your family and play a nasty game with their morale. A financial imbalance may also appear as money is needed to take care of you and keep the house running. Bills have to be paid. Any loan that you have must be paid. The children have to continue going to school. If you had insured with critical illness insurance, you could have got enough money to settle these debts during your worst days.

Most people insured with critical illness insurance, strongly rely on its payout. To be able to obtain a payout without any problem, you should provide accurate information about your health, actual and historical. Some people have their critical illness insurance claim rejected because they did not reveal vital facts about their health. Critical illness insurance looks at this factor closely. If members of your family suffer from a specific disease, you should let your insurers know about the fact. You could be made to undergo medical tests. The results could be verified before accepting you as a critical illness policy holder.

Anyone who has a critical illness insurance may be sure to have a definite advantage. You could be suffering from a critical illness at any point in the future. If you have no dependents, you may have enough money to cover your medical expenses. Then, if by misfortune you are disabled, you could even pay someone to look after you everyday. If you have a family all financial drain that your critical illness may cause could be alleviated.

Moreover, critical illness insurance could take about three months to disburse you the payment. Should you die during this time, then the money could go to your inheritor. For example, your wife. Critical illness insurance takes this time to verify if your claim is in complete rule with them. Actually seven major diseases are covered by most critical illness insurance companies. The prices are more competitive than before as more insurance companies have shown up. On the other hand more and more people are seeking for critical illness cover. But as a measure of precaution you should ensure that you do not get stuck with incompetent insurance companies because of low prices.

Thus, the bottom line remains that critical illness insurance may provide enough support to someone. Make your choice wisely from so many critical illness insurance companies out there. Put your mind at peace by carefully choosing a reliable company offering a comprehensive critical illness policy.