4 Myths of Critical Illness Cover… Dispelled

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Critical Illness Cover is designed to pay out a lump sum or regular payment to ease your recovery if the worst was to happen and you are diagnosed with a serious illness specified in your policy.

Common myths surrounding critical illness may result in people being reluctant to take out a policy, even though you may well need this type in your lifetime. We’re here to answer some of these myths.

  1. “It’ll never happen to me”

Most people believe that a critical illness will never happen to them, but most of us know of someone either directly or through friends and family that has been affected. When considering Critical Illness Cover, it’s worth thinking about the effect of not being protected.

With the good news that survival rates are increasing for certain conditions*, the need for financial protection is even more important.

*Cancer Research UK, http://scienceblog.cancerresearchuk.org/2018/02/03/news-digest-cancer-survival-breast-cancer-drug-cancer-jab-trials-and-vaping/, February 2018

  1. “I’m too young”

No one wants to think they’ll be struck down with a critical illness – but it can affect anyone, at any age and any time.

  • The age group of 0-24 has the greatest increase in cancer incidence rates since the early 90s.*
  • In females aged 25-49 years, breast cancer is the most common cancer, accounting for more than 4 in 10 (44%) of all cases in 2013-2015.*
  • Multiple sclerosis (also known as MS) is the most common neurological disorder among young adults in the UK. It’s possible for MS to occur at any age, but in most commonly diagnosed in people in their 20s and 30s.**

*Cancer Research UK, http://www.cancerresearchuk.org/health-professional/cancer-statistics/incidence/age#heading-Five, Accessed February 2018. 
** NHS, http://www.nhs.uk/Conditions/Multiple-sclerosis/Pages/Introduction.aspx, published 2016.

  1. “It’s too expensive”

The cost of cover changes due to various factors, these include:

  • Age
  • Sex
  • Health
  • Family history
  • Occupation
  • Smoker/Non-smoker

Generally, the younger and fitter you are, the cheaper the cover.

You can also choose to buy critical illness as an add-on to a life insurance policy. It can work out cheaper, but it usually means the policy will only pay out once. So if you made a critical illness claim, there wouldn’t be a pay-out when you die.

  1. “Life companies never pay-out”

97% of protection claims were paid out*, including 98% of term life insurance claims and 93% of critical illness claims.**

*Excludes Group Income Protection
**ABI UK Insurance Key Facts 2016 https://www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/2016/keyfacts/keyfacts2016.pdf

Next steps

When taking out a critical illness policy, you should ensure you are aware of the conditions that are covered, these could include: cancer, heart attack, heart bypass, kidney failure, major organ transplant, multiple sclerosis and stroke. Cover can differ from policy to policy, which is why it is important to take sound advice before selecting a policy.

Speak to our expert advisers about the most suitable Critical Illness Cover from our panel of leading insurers

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Please note for these insurance products, terms and conditions apply. This information is a summary only. You will receive a full policy document upon application. This policy will set out the terms, conditions and limitations of cover provided under the plan.

Lifetime Finance Group Limited trading as Aberdeen Mortgage Company is an appointed representative of PRIMIS Mortgage Network, a trading name of First Complete Limited, which is authorised and regulated by the Financial Conduct Authority for mortgages, protection insurance and general insurance products. The Financial Conduct Authority does not regulate some forms of Buy to Let. Lifetime Finance Group Limited.