So you think you’re invincible…….

By: Kathryn Foy, Office Manager and Business Case Handler at Open Vision Finance

When you think of a critical Illnesses do you automatically think “that will never happen to me” “…other people get sick, not people like me!”

Please accept my apologies for being blunt but people like you do get sick… all of the time. In fact:

“In 2017 Legal and General paid £209 million in critical illness claims, an average of £64,925 per claim.”

I don’t know about you, but I would rather be one of the people making that statistic, than someone who chose not to take cover and has been left with additional financial worries on top of the health worries.

“Every year, 1m workers in the UK unexpectedly find themselves unable to work because of injury or illness, according to the ABI (2015).”

If you are not au fait with how critical illness cover works please read on, as at least then you can make a FULLY Informed decision not to take out cover, rather than not know how something as simple as applying for this cover could provide a tax-free lump sum payment to help towards the financial impact that this might have:

• Any long-term care that you may require
• Paying for any alternations to living conditions
• Medical equipment
• Paying off your mortgage
• Enhancing the quality of life
• Private medical treatment
• Additional living costs incurred (child care, loss of an income)

The list is endless, and the cash would be yours upon payment to choose how best to support your family, health and cash flow. Something as simple as being able to clear your mortgage or make alterations to your home to support your healthcare can take a huge financial burden off of a family that have been given life changing news.

The level of cover and the term of cover can be discussed with your adviser to find the best solution, that best suits your needs. Most people choose to cover full mortgage sum including any early repayment charges that might be applicable to the loan, over the full term of the mortgage.

Obviously, this kind of cover isn’t free and the factors that can affect the cost of premiums are the level of cover, age and existing medical conditions. But even saying that, most policies can be tailored to suit your needs and/or your budget! Sounds great, right…?

Right, so…the big question? Do you currently have Critical Illness cover? NO? Are you going to look into this?

By obtaining a quote you have nothing to lose and peace of mind to gain. At the end of the day the financial burden will lie on your family…. are you comfortable with this? I thought not…

You should absolutely consider getting critical illness cover if you don’t have enough savings to tide you over if you become seriously ill or disabled or if you don’t have an employee benefits package to provide this cover for you. I think I can safely say this would be required for most of us!

Now for the technical side of things. The role of your adviser is key here to ensure that the best policy is selected for you. There are a huge number of providers offering this cover and all are different! The advisers are there to compare the policies and the illnesses covered and to advise you of the additional features… thus ensuring that you have the most suited policy to you and your circumstances and within your budget.

If you have found this article interesting or would like to arrange an appointment with one of our experienced Brokers, please get in touch with us on 01823 444022 or by email to advice@openvisionfinance.com.

Source Legal and General Critical Illness statistics https://www.legalandgeneral.com/files/library/protection/2016-claims/w13945.pdf

Source – Money advice service

https://www.moneyadviceservice.org.uk/en/articles/critical-illness-insurance-do-you-need-it