Critical Illness Cover

At SMH Financial Services, we understand the importance of being prepared for the unexpected. A critical illness can be devastating both emotionally and financially, and that’s why we offer a comprehensive Critical Illness Cover service to help you protect yourself and your loved ones.

What is Critical Illness Cover?

Critical illness cover, also referred to as critical illness insurance, is a long-term insurance policy where you’ll get a tax-free ‘lump sum’ – a one-off payment – if you’re diagnosed with one of the serious illnesses covered by your insurance policy. It’s designed to pay off your mortgage, debts, or pay for alterations to your home such as wheelchair access should you need it.

What does Critical Illness Cover, Cover?

Your critical illness insurance will pay out if you get one of the specific medical conditions or injuries listed on the policy. Not all conditions are covered. The policy will also specify how serious the condition must be. Examples of critical illnesses are:

  • Heart attack
  • Stroke
  • Certain types and stages of cancer
  • Certain conditions such as multiple sclerosis
  • Most policies will also pay out if you are permanently disabled as a result of injury or illness. It only pays out once and then the policy ends.

Benefits of Critical Illness Cover?

  • Financial Protection – The primary benefit of critical illness cover is financial protection. If the policyholder is diagnosed with a covered critical illness, the insurance policy pays out a lump sum. This payout can be used to cover medical expenses, rehabilitation costs, and other financial obligations, providing a financial safety net during a challenging time.
  • Coverage for Major Illnesses – Critical illness cover typically includes a range of major illnesses such as cancer, heart attack, stroke, and organ transplant. The coverage varies by policy, but it often includes conditions that can have a significant impact on an individual’s health and ability to work.
  • Supplement to Health Insurance – While health insurance covers medical expenses, critical illness cover complements it by providing a lump sum that can be used for non-medical costs associated with the illness. This might include modifications to a home, travel for specialized treatments, or replacing lost income during recovery.
  • Income Replacement – The lump-sum payout from critical illness cover can be used to replace lost income if the policyholder is unable to work due to the critical illness. This can help maintain the policyholder’s standard of living and cover ongoing expenses.
  • Debt Repayment – The payout can be used to repay outstanding debts, such as mortgages, loans, or credit card balances. This helps prevent financial strain during a period when the individual may not be able to work.

 

Other insurance you might need as well as, or instead of, critical illness:

If you have dependents – like children, or a partner – then life insurance will most likely be more important than critical illness insurance. But life insurance only pays out if you die (or are diagnosed with a terminal illness).

You also need to think about how you would get by if you suffered an illness not covered by a critical illness policy and couldn’t work. In these circumstances income protection insurance may be more suitable and a cheaper option.

If you would like to arrange an initial meeting with one of our financial advisers, please contact the SMH Financial Services team on info@smh.group or 0114 266 4432.

Financial protection policies typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.