FREQUENTLY ASKED QUESTIONS
Critical illness cover is a policy that will pay out if you are diagnosed with an illness that is covered by your policy.
You can combine life cover with critical illness cover, so your policy will pay out either if you are diagnosed with an illness that is covered by your policy or you die. It pays out on whichever happens first before the policy ends.
Critical illness cover could reduce the financial impact of a critical illness, by helping with practicalities such as helping pay off your mortgage and any bills, allowing you to focus on your health and wellbeing.
Yes, you can choose to each have your own individual policy or you can have a joint policy. For a joint policy when one of you is diagnosed with one of the illnesses covered by the policy the cover ends for both of you. The payout will normally go to the person who has been diagnosed.
It depends on your personal circumstances. There are some things you may need to consider, which your adviser will go through with you. These could include:
- how much you and your family would need to support themselves without your salary
- the size of your mortgage and how long it’s got to run
- any other outstanding loans or debts you have
- the amount you want to pay each month.
Yes. When you apply you can:
- start it as soon as possible
- choose ‘Not known yet’ (if you are unsure when you would like your policy to start)
- give a specific date.
No. Life insurance policies have no cash-in value at any time. Also, if you don’t pay your premiums on time your cover will stop, your policy will end and you’ll get nothing back. If the sum assured has not been paid out by the end of the selected term, the policy will end and you’ll get nothing back.
You may wish to put your policy in trust, where you can specify who should benefit (the beneficiaries). You should speak to your adviser if you would like to do this. Critical illness cover would normally be paid to yourself, while if you’ve included life cover, this will go to the beneficiaries you choose.
It’s also important to have a will in place to protect your assets and your loved ones. Learn more about writing a will.