The impact of a serious illness could be devastating to a Contractor’s long-term earnings and career prospects. We have asked our partner ContractorMoney to put together a few FAQs.
- What is critical illness protection?
- What’s the difference between this and Income Protection?
- How much will it cost?
- What about the small print?
- What next?
What is critical illness protection?
OrangeGenie have enlisted the help of specialist Independent Financial Advisers ContractorMoney to advise clients on this subject. For a regular monthly premium a contractor can arrange for a lump sum to be provided on such a diagnosis - funds that will to help make your life easier and take away the stress and pressure of not working.
What’s the difference between this and Income Protection?
To quote Tony Harris at ContractorMoney, “This cover goes hand in hand with income protection/Permanent Health Insurance (PHI) which pays a monthly income in event of illness but which would stop once you were assessed as having made a satisfactory return to health. Unfortunately this early suspension of the payments on a PHI policy means you're forced back to work when perhaps the sensible thing is to de-stress and take a lower paid job. The lump sum pay out from a critical illness policy would be yours to keep, regardless of a return to some measure of good health and could maybe allow for some changes to your work pattern etc…”
How much will it cost?
ContractorMoney always ensure that quotations are competitive. Medical definitions of what is covered are very important and must be comprehensive enough to be of practical use to you in the event of a claim. The provider must also have a good track record of meeting claims. Premiums must also remain affordable throughout so that protection can also be maintained, as you get older.
What about the small print?
Critical Illnesses policies are being reviewed as the market adjusts to an increase of claims. Some providers have reduced the number of illnesses covered, and premiums have increased. Changes to policy wordings and increased costs can only be applied to new schemes and ContractorMoney recommend that you review your current circumstances now, to ensure that you would be adequately protected in the event of such illnesses.
What next?
Please complete and submit our online enquiry form. One of our advisers will get back to you in a jargon free manner with recommendations.
