Critical illness insurance

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Critical illness insurance (PDF, 0MB)

This insurance will pay out a tax-free lump sum on diagnosis of the illnesses listed in the policy documents. You could use this to cover treatment costs, ease significant debts or in any other way you choose. It can be bought as a stand-alone insurance or as an addition to a life policy.

All policies cover certain core conditions (such as specific types of heart attack, cancer, kidney failure or organ transplant), but it is important to check the wording of your policy to find out what is – and is not – covered.

You can buy policies where the premiums are guaranteed for the life of the policy or on the basis of reviewable premiums. This second option means the cost is likely to go up over the years, because of advances in medicine and the claims experience of the insurer.

The rules regarding total and permanent disability vary between policies. Some pay out if you are unable to carry out your normal job, others if you are unable to do any job, and the rest if you are unable to carry out certain normal activities of daily life such as walking, feeding and dressing yourself.

Cover for your children is included on some policies, but it is important to check the wording carefully.