Critical illness insurance (sometimes known a ‘dread diseases’ insurance) originated in South Africa and developed in the UK in the 1980s and 1990s.
Many of us have life insurance either personally or death in service work benefits but the real question to ask yourself is, “What if I don’t die?” You have provided for and protected your loved ones or your mortgage if you die but what if you cannot work long term or suffer a serious illness meaning you will never work again?
What is covered by Critical Illness Insurance?
Definitions have been agreed by the Association of British Insurers (ABI) working with the industry to deliver an agreed minimum number of core conditions covered as well as a basic list of other conditions that you would expect to be protected by via your critical illness policy.
Core Conditions (must be included in all critical illness policies)
List of General Conditions (usually covered)
The above list is not exhaustive, and many insurers may have an even wider range of illnesses covered. When comparing critical illness policies, it is not just about the cheapest premium it is also about the range of illnesses covered.
Standard ABI Exclusions
As you may expect, the following are not usually covered by critical illness policies:
We consider critical illness insurance protection just as or perhaps more important than life insurance. You are 6 times more likely to develop a serious illness than you are to die in your 40s and 50s.
Even just a small £10,000, £20,000 0r £30,000 critical illness policy make all the difference if you were to suffer a serious illness or accident.