So what is Critical Illness Cover? Do I need it?
Critical Illness Insurance is a financial protection policy that provides you and your family with a tax free* lump sum of money upon the diagnosis of a medical condition listed in your policy documents. For many this will be an average of 40 conditions resulting in a full policy payment and a smaller set of conditions that will result in a partial payment of the total sum assured.
Whether or not you need Critical Illness Cover is something that only you and an insurance adviser can fully ascertain. You should consider the following questions when wondering if Critical Illness Insurance is right for you?
- Would you be able to pay off your mortgage if you were diagnosed with a critical medical condition?
- Would you want to have the essential funds required to adapt your house and lifestyle should you fall seriously ill?
- Would you find finances to pay for private medical healthcare useful?
- Would you like the security of knowing that if your child falls seriously ill, you could afford private medical treatment for them or to take time off work to care for them?
If you answer yes to any of these questions then it is worthwhile considering Critical Illness Cover. It would be impossible to discuss all of the options available for Critical Illness Insurance in this article but we can hopefully give you a good start in making the decision that is right for you.
One of the most important considerations to make is whether or not you want to include Life Insurance with your policy; this is often at a minimal (if any) extra cost. Critical Illness Cover will not payout a claim if you die within 14 days of the diagnosis of your illness. By including Life Insurance you remove that worry of the 14 day survival period, as the claim would simply transfer to a death benefit claim. This provides a bit of extra security for your family should the worst happen.
Critical Illness Cover for Diabetics?
Critical illness Cover can help you prepare yourself and your family to have financial security should the worst happen. Friends Life are a well established and reputable company that can offer Critical Illness Insurance to Diabetics in certain circumstances. Being a diabetic, you may think that you could not possibly insure yourself for Critical Illness Cover.
The acceptance criteria is quite strict at present. Friends Life state that to be accepted you must be type 2 diabetic, have very good control of your condition, not be on insulin and have no other risk factors such as high blood pressure, cholesterol or being overweight.
A significant point to make about the Critical Illness policy with Friends Life is that it will exclude a large number of the conditions covered under a standard policy. Many Insurers will not offer diabetics Critical Illness at all. It may not seem fair that so may conditions are excluded from the Friends Life Critical Illness policy if you have diabetes, but at least they do provide cover where others will not. A full list of conditions that will not be covered by this policy are included at the end of this guide.
It may seem as if there is no point in applying for the Critical Illness contract with all of the exclusions that are applied, due to your diabetes. However, have you considered the likelihood of you also being diagnosed with Parkinsons disease or became deaf? Or, developing a serious cancer? Whilst we are sure that the last thing you want to think about at the moment is yet another illness, diagnoses of multiple conditions are relatively common.
Below is a list of the 25 Critical Illness conditions that you can claim for on your policy:
- Aplastic Anemia
- Bacterial Meningitis
- Benign Brain Tumour
- Benign Spinal Cord Tumour
- Carcinoma in Situ of the Breast
- Carcinoma in Situ of the Cervix
- Carcinoma in Situ of the Urinary Bladder
- Creutzfeldt-Jakob Disease
- Crohn’s Disease
- HIV Infection
- Liver Failure
- Low Grade Prostate Cancer
- Motor Neurone Disease
- Multiple Sclerosis
- Non-malignant Pituitary Adenoma
- Parkinson’s Disease
- Progressive Supranuclear Palsy
- Respiratory Failure
- Rheumatoid Arhritis
- Terminal Illness
- Third-degree Burns
- Ulcerative Colitis
* Please note that each of these conditions have a definition of severity that must be met to ensure a valid claim. Not all cancers, heart attacks and strokes are covered by any critical illness policy.
Critical Illness insurance provides you with a lump sum of money should you be diagnosed with one of the conditions covered by the policy. The payout that you receive can be used to do whatever you want with it, it is completely up to you. You can pay for counselling to come to terms with your new body, put alarm systems into your home, pay for a carer or spend it all on a trip to the States.
The money you receive for your Critical Illness insurance is there to put your mind at ease by removing the stress of financial concerns at a time that should be all about you. If there was ever a time to focus upon yourself, your family and the future, it is now.
We have in-house specialist Financial Advisers who regularly source Critical Illness Insurance for clients with diabetes. Why not use our online Critical Illness quotation system to find out how much you can protect yourself for. If you would like to speak with one of our diabetic specialists please feel free to call us on free phone 0800 567 7450 or leave your details with your online quotation and we will return your call as soon as possible.
Friends Life diabetic critical illness cover – Excluded conditions:
- Alzheimer’s disease
- Aorta graft surgery
- Cardiac Arrest
- Cerebral Aneurysm
- Cerebral Arterious Malformation
- Coronary angioplasty
- Coronary artery by-pass grafts
- Heart attack
- Heart valve replacement or repair
- Kidney failure
- Loss of independence
- Loss of hands or feet
- Loss of speech
- Major organ transplant
- Open heart surgery
- Paralysis of limbs
- Type 1 Insulin dependent diabetes mellitus
- Accelerated payment for heart surgery
- No benefit will be payable under any Critical illness definitions arising, either directly or indirectly from any form of pancreatic cancer
- If you would like more information on obtaining insurance when you have Type 2 Diabetes click here.