Critical illness cover is designed to ease the financial pressures by paying a tax-free lump sum if you become seriously ill or totally disabled. You must normally survive at least one month after becoming critically ill before the policy will pay out.

For a young single person with no dependents who doesn’t need to consider the costs that might affect their family should he or she die, critical illness insurance could be the most relevant type of life insurance. It is designed for when it’s more important to meet the costs of living than ensuring family members receive a payout after your death.

How you use the benefits is entirely up to you. They may be used to pay off a mortgage or clear outstanding debts. They could also help to pay for childcare or home help.

Crucially, benefits from a critical illness policy give you time to come to terms with your condition and decide what changes you want or need to make to your life.

We can arrange critical illness cover in a number of different formats, for example it can be:

  • A standalone policy – this could be most appropriate for a single person.
  • Combined with a life assurance policy meaning that there would be a lump sum payment in the event of your death or a critical illness.
  • Taken as contingency cover to help you cope with your outgoings during your recuperation period.

As with life insurance you can combine a critical illness policy with other benefits, such as income protection. This can be more cost effective than taking out separate policies.

The products detailed above are not investments and have no cash-in value at any time.