If you become seriously ill, this can have a financial impact on you and on your dependents. Income protection insurance is effective at protecting your family finances against serious illness that may result in you being out of the workplace for an extended period. Critical illness is another form of insurance which pays out if you contract one of a specified list of illnesses.
- 80% of critical illness claims are accounted for by:
- Cancer
- Stroke
- Heart attack
Numerous other illnesses including Alzheimers disease, brain tumour, dementia and multiple sclerosis are usually included – with the exact terms varying by insurer.
Note that a severity test applies to claims and it should not be assumed for instance that any heart attack would result in payment.
You should assess your life assurance, income protection and critical illness insurance needs overall. You want your family to be protected in all eventualities.