Critical Illness Cover (CIC)

This is a form of insurance that pays out on diagnosis of certain illnesses such as cancer, stroke, heart attack and many others.  If you suffer a disability or incapacity following an accident, that may also be covered.

The pay-out from the CIC can be used for a variety of reasons to suit individual situations and objectives.

Serious Illness Cover (SIO)

This is a form of cover which pays-out on the severity of the illness.  For example Critical illness may pay-out on blindness.  But serious illness cover may pay-out on partial blindness.  And the balance of cover will remain in place, meaning you can claim further amounts if the severity of your illness worsens or you have another illness.  It will continue to pay out until the full sum assured is exhausted.  Not all providers offer this cover, but for some this can be a valuable feature.

And for a small extra premium, many include life cover so there is a plan pay-out in the event of death and/or disability.

These are the basic options. There are other features such as renewable cover, guaranteed insurability, children’s cover and so on. There also benefits such as Best Doctors (you can seek specialist advice regarding any health condition at no cost) or Global Treatment (you can have treatment undertaken by a specialist anywhere in the world). An advisor will discuss the actual benefits and how they work so that you know exactly what you have.  The use of Wills & Trusts can further help ensure policy proceeds are used in accordance with your instructions such as for example if you lose mental capacity.  The Financial Conduct Authority do not regulate Wills & Trusts.

Wills & Trusts – Click Here

Case Study 1.

We had BAA worker at London Heathrow who suffered a heart attack.  It was a minor attack and he was at work 3 months later, albeit at a desk job.  The CIC paid out and he used that to reduce his mortgage.  His reduced income was not such a factor as a result.

Case Study 2.

A lady in her mid 30s who had Multiple Sclerosis was paid out.  As she was a civil servant, her income was guaranteed within her benefit package and so she continued to pay her mortgage as it was comfortable to do so.  She was able to use her pay-out to restructure her home to meet her needs.  Widening doorways, moving her bedroom downstairs and purchasing various other aids to support her life style.

The case studies are for illustrative purposes only and do not constitute advice.

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