Critical Illness and income replacement

Have you ever thought about how you and your dependants would financially cope if you were to develop a critical illness?

Some of the most serious conditions, such as heart attack, stroke and cancer, are referred to as a ‘critical illnesses’ by the financial services industry and although survival rates are now much better than 20 years ago, if you are unlucky enough to be affected, these could lead to serious financial consequences for you and your family if you do not have adequate insurance cover in place.

Ensuring that you are protected if you were to be diagnosed with a critical illness is crucial to support your lifestyle, and avoid financial loss and difficulties if you need to stop working completely or cut down your hours.

Benefits of Critical Illness Cover

Critical illness policies pay out a lump sum upon diagnosis of a covered condition, which would be used to cover a variety of needs – such as paying off a mortgage, settling debts, making necessary adaptations to your home or paying for medical costs.

Unlike other types of policy, you receive the income upon diagnosis rather than death, so you can use the funds to improve your lifestyle and pay the bills while you recover. With a Critical illness policy, you receive a single lump sum upon diagnosis, which does not need to be returned, even if you return to perfect health.

This type of insurance is often used in conjunction with either Income Protection (Permanent Health Insurance) or Life Insurance. Permanent Health Insurance will provide you with a monthly income while you remain unable to work.

A popular option with Contractors is to combine Critical illness cover with Life insurance. This is often cheaper than arranging the two policies separately and you will only need to manage one monthly premium.

You will be able to choose the amount of benefit that you want to receive, as well as the length of term that you are covered for i.e. until your children grow up. For a relatively small monthly premium you can rest assured knowing that if you were to be diagnosed with a critical illness, you and your family are financially protected.

We work with Contractor Wealth to ensure you have the right cover. They will help you every step of the way, from finding the best policy for you, to even handling a claim for your convenience. Your Adviser will also ensure that your cover is inflation proof, so that your amount covered does not fall in value, therefore you can rest assured knowing that you will have the same amount of spending power whenever you need to claim. If you would like to speak to an Adviser about organising your Critical illness cover, or a combined policy let your accountant know and they can make the introduction.



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