Critical Illness
People who suffer major life-threatening illnesses, such as a heart attack or stroke, survive for relatively long periods, however, it may not be possible to return to work after suffering such an illness and this is where Critical Illness cover plays an important role.
Critical Illness policies pay out a capital sum on diagnosis of a critical illness or on death, whichever is earlier. However, not all life offices offer the same list of diseases and this will be defined in the Key Features Document that is supplied by each life office.
Policies can be written on a single life basis or a joint life basis. The policy has a set term during which a monthly premium is paid. The sum assured remains unchanged during the term of the policy.
A Whole of Life Critical Illness policy can also be taken out. In other words, there is no set term, the policy runs for the whole of your life. These types are usually much more expensive. Also, the policy is reviewed every 10 years to see if the premium can sustain the level of cover required and, therefore, the premium may go up after every ten year review.