Critical Illness Cover Kent: How it Works with Life Insurance.

What will happen if you get seriously ill? The consequences can be devastating, which is why Critical Illness Cover (CIC) could be essential. How does it work? Let the team at Blueprint Financial Solutions explain.  

The conditions covered by Critical Illness Cover (CIC)

If you take out Critical Illness Cover (CIC), it will pay out if you have:

• A heart attack
• A stroke
• Cancer 
• Other critical illnesses

Remember that different providers define conditions differently, so some will pay out while others won’t. Check the small print. 

In 2023, 75,700 standalone critical illness policies were sold, up 7% on 2022 and nearly four times the number sold a decade earlier, according to the Association of British Insurers.

 How Does Critical Illness Cover Work?

• For a payout to be triggered, a diagnosis must match the policy wording. 
   
• To claim, contact the insurer with medical evidence from your specialist. Keep copies of scans, letters and policy documents.
   
• Early-stage cancers may be excluded or paid at a reduced percentage depending on the contract. 

Standalone vs Combined Critical Illness Cover.

 A standalone critical illness policy pays out a lump sum if you’re diagnosed with one of the covered conditions. It is not connected to a life insurance policy. You buy it separately, and the payout is yours to use however you wish. 

• No life insurance component: the policy only pays out on a critical illness.
   
• Flexible amount: you choose the cover level, often from £10,000 to £500,000.
   
• Renewable or fixed term: typically, available for 5, 10, 20 years or up to age 70.

If you already have life insurance elsewhere and just want extra financial protection for serious illness, a standalone policy could be a good idea. 

With a combined policy, both life insurance and CIC are wrapped into one contract. You pay a single premium, and if you die or are diagnosed with a covered illness during the term, a lump sum is paid out.

• Dual payout trigger: death or critical illness (but not both – once a claim is paid, the policy ends).
   
• Single premium: often cheaper than buying two separate policies.
   
• Accelerated or stand alone: most UK combined policies are “accelerated”, meaning the critical illness benefit is deducted from the life sum assured. 

If you want simple, affordable protection for your family in one place, a combined policy could be a suitable option for families in Kent.

 Who Can Benefit from Critical Illness Cover?

• Families: When a parent becomes seriously ill, the financial consequences can be devastating. CIC can cover loss of income, ongoing bills, childcare costs, and treatment costs.
   
• Business owners: For business owners, CIC can help keep the household and the company afloat during an intense personal crisis. 
   
• Self-employed: With this scenario, you may want to combine CIC and Income Protection. This pays a lump sum for a specific diagnosis. It also provides regular monthly income if any illness or injury prevents you from working. These two policies cover different risks and can be combined to protect against both immediate costs and long-term income loss. 

Get In Touch  

Ready to explore your Critical Illness Cover options? Contact our Kent based team at Blueprint Financial Solutions for guidance on choosing suitable cover.