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Do you think that Critical Illness Insurance is not really necessary because you do not believe that you will ever need it?

Although most people do not like to consider the possibility that it will happen to them, the chances of developing a serious illness are high enough to make it important to do so.

After all, 20% of men and 17% of women in the UK develop a serious illness that prevents them from working, at some point in their lives.

Although Critical illness Insurance cannot alter the odds of becoming critically ill, it can help you to deal with the financial consequences of developing a long term illness which makes it impossible for you to work.

Around 12 million people in the UK are covered by Critical Illness Insurance and providers have paid out over

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Critical illness cover (CIC) is a type of insurance which provides a significant one-off payment if you are diagnosed with a specified life-threatening condition - specified being the important term, because if your illness isn’t in the terms and conditions - you won’t get the payment. Over recent years, critical illness cover has gained in popularity due to lower costs and apparent simplicity.

Critical illness insurance can be sold as part of a mortgage package or additionally as a stand-alone policy. Critical illness cover can also be commonly associated with life insurance, with certain CIC policies paying out either on the diagnosis of a particular illness or on death, but not both, whilst other CIC policies pay out in both events.

When you first purchase the critical illness insurance policy, there might be an option for buy-back insurance, this would permit you to buy additional critical illness cover or life insurance, typically at a minimal cost, after you have made a claim on your existing CIC policy. It is often worth considering such an option, as the survival rates from a critical illness are usually very good and it can be extremely difficult to obtain new cover following a critical illness. Buy-back critical illness cover usually protects against the three major critical illnesses: heart attack, stroke and cancer from which you are most likely to recover, but also risk an attack later in life.

Bear in mind that when you take out life critical illness insurance, there is a standard waiting period between diagnosis and possible payout, from six months to a year for certain conditions, such as total permanent disability. However, if the diagnosis is very transparent, it is possible that the insurer would consider waiving the waiting period. The maximum payout varies from policy to policy thought it’s not unusual to see capped payouts of

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