Home » Finance » Insurance

What is Critical illness insurance cover? do I need it?

Apr 30, 2008
As part of your overall financial planning it may be of benefit to consider the option of critical illness insurance cover, what it entails, and whether it would be important with regards to your family and loved ones future financial peace of mind.

A lot of people are fully aware of life insurance and quite a few of them already are aware of the fact that they need some sort of life insurance as part of good financial planning. This is not least when they have a mortgage or a loan to insure. That said considerably fewer of them are aware of critical illness insurance let alone the important role it can actually play in good financial planning.

Critical illness is a completely unique form of insurance cover. It can be added to your existing policy as an extra or can be taken out independently as a form of insurance policy in its own right. Its specific purpose is to provide cover which will pay out the sum of money insured to the insurer should one of any number of critical illnesses deem them unable to work, such as cancer, heart attack, major organ transplant, stroke, and the list goes on.

The major thing to note is that payout of the insured amount is not dependent on any outcome of these critical conditions. That is to say, you do not have to die from one of these terrible illnesses for there to be a payout. You simply have to have suffered from the condition. As an example, you could suffer a heart attack and consequently see the policy pay out the insured sum, but could in fact go on to make a full and long enduring recovery, a not uncommon possibility with today's modern medicine.

So quite a valuable benefit to have, as a standalone plan, but also as an additional benefit on any other type of life insurance. So what plans can you have it added to? You can have it on level term insurance you can add it to whole of life assurance and most notably you can add it to mortgage protection.

It is mortgage protection or mortgage life insurance where this type of benefit is most valuable. You can have a mortgage and, should you die you would want it to be repaid of course, but not many people give very little thought to what would happen if they do not die. Lets say you have a heart attack and you don't die you have to convalesce for e few months with no income coming in. It is this very reason why critical illness insurance is so valuable. It makes sure that debts are taken care of thus ensuring you the peace to recover without the stress of worrying about were money is going to come from.

As an addition to mortgage life insurance, critical life insurance can sometimes be viewed as a luxury, with that money being put to better use in the here and now. As long as you have some coverage then your bases are covered, right? And that's the pity because if people actually knew how beneficial a critical life policy would be to their future financial security then they would be more willing to at least enquire about it and then would most probably invest in one for the future.

To conclude. It is obvious that critical illness insurance has many benefits, indeed some would consider it more important than life insurance, per se, as you don't have to die for the benefits to be gained. It is up to the individual to decide whether it is affordable but it's coverage for mortgages and loans, at the least, should definitly be weighed up against the outlay. The best bet is to seek the advice of a life insurance adviser to talk you through the options, and maybe then advise you on the best type of critical illness cover to suit your needs and finances.
About the Author
Get the best from your life cover plan try Invest & Protect for free online discounted quotes for life insurance cover
Rating:
Please Rate:
(Average: Not rated)
Views: 186
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources