Critical Illness Insurance Another Scam


Critical Illness Insurance Another Scam

Critical Illness Insurance – Another Scam?
Unless you​ have substantial savings,​ even in​ the​ UK,​ contacting a​ serious illness,​ such as​ cancer,​ can be a​ very costly affair .​
Above all,​ not only do you​ need to​ consider how contracting such a​ critical illness will affect your savings in​ any medical care bills,​ but you​ also need to​ consider that you​ may well not be able to​ earn any income to​ cover you​ day-to-day expenditure .​
As a​ result,​ making sure you​ take out a​ critical illness insurance may well be one of​ the​ wisest and astute financial decisions you​ make.
What is​ Critical Illness Insurance?
In short,​ a​ critical illness insurance policy is​ very much like any other insurance policy you​ take out .​
Here,​ however,​ your premiums go towards insuring that you​ do not contract a​ critical illness .​
In the​ event that you​ do contract a​ critical illness,​ your UK insurance provider will pay you​ out a​ tax-free lump sum to​ help you​ cover the​ day-to-day costs of​ having to​ live with your new medical condition.
Are There Any Limitations With Critical Illness Insurance?
Yes; it​ is​ essential that you​ look at​ the​ list of​ critical illnesses that your insurance policy covers,​ as​ these will be the​ only illness under which the​ policy will pay-out .​
In other words,​ the​ UK insurance provider will not pay-out on​ the​ policy simply because you​ have a​ doctor’s certificate that you​ have a​ critical illness,​ it​ needs to​ be one of​ the​ designated critical illness.
Moreover,​ if​ you​ are considered by the​ UK insurance provider to​ be a​ high risk – for example,​ if​ you​ smoke – then it​ is​ likely that either you​ will not be able to​ obtain the​ critical illness insurance,​ or​ your insurance premiums will be significantly higher than if​ this were not to​ the​ case .​
Importantly,​ you​ will need to​ disclose whether or​ not you​ have any existing conditions,​ in​ which case these will likely not be included,​ and whether or​ not your family has a​ history of​ the​ illnesses set out in​ the​ policy,​ in​ which case this will likely affect your premium payments.
How Will I​ Be Paid?
As mentioned,​ with a​ critical illness insurance your UK insurance underwriter will pay you​ out a​ lump-sum tax free amount once you​ contract one of​ the​ critical illnesses listed in​ the​ policy .​
Having paid out the​ lump-sum amount,​ your relationship with the​ UK insurance provider will come to​ an​ end .​
In other words,​ you​ will not have an​ ongoing relationship with the​ insurance provider paying you​ intermediate payments.
Is It Worth Having Critical Illness Insurance?
The question of​ whether or​ not there is​ any value in​ you​ having a​ critical illness insurance will depending largely on​ your age,​ expenses,​ and whether or​ not you​ have any other insurance .​
Essentially,​ critical illness insurance covers an​ area for which other types of​ insurance can be obtained .​
However,​ unlike other types of​ insurance,​ this is​ a​ very specific insurance policy paying out for a​ very specific purpose .​
That said,​ there is​ a​ strong argument that you​ can never really have too much insurance and will numbers seemingly showing that more and more of​ us contracting critical illnesses as​ we grow as​ an​ aging population,​ this type of​ UK insurance is​ always useful.






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