1. A Guide toCRITICALILLNESSPROTECTION Providing financial security at an emotional and difficult time

2. A Guide to Critical Illness ProtectionA Guide toCRITICALILLNESSPROTECTIONProviding financial security at an emotional and difficult timeIts easy to think it wont happen to me, but if the worst should include reduced cover for childrenhappen, your critical illness insurance could help provide financialbut the new rules spell out when itsecurity at an emotional and difficult time. Whether it helps pay will not apply - for example, if thecondition was present at birth.off your mortgage, funds a relaxing holiday to recover fromtreatment, or just help you cope with the bills and expenses, Q: Should I have a critical illnessthe lump sum pay-out from critical illness insurance couldinsurance policy?relieve worries and let you concentrate on getting better.A: Your need to be covered byinsurance against the diagnosis of aMost home buyers purchase life diagnosed with a critical illness, orcritical illness will largely depend onassurance when they arrange ayou die, whichever happens first.your life stage and your particularmortgage, but only a minority circumstances. These mightobtains critical illness insurance.Q: What conditions are covered?include having a family to support,Critical illness insurance pays a tax- A: All policies should cover seven being a homeowner and paying afree lump sum on the diagnosis ofcore conditions. These are cancer, mortgage, those who have paid offany one of a list of specified serious coronary artery bypass, heart attack,their mortgage, or those who haveillnesses including cancer and kidney failure, major organ transplant,separated from their partner and haveheart attack.multiple sclerosis and stroke. Theydependant children. may also pay out if a policyholder If you are about to start a family (orYour questions answeredbecomes permanently disabled as ahave one already), a critical illness result of injury or illness. insurance policy is an essential way toQ: What is critical illness insurance? But not all conditions are necessarily plan for the entire familys protectionA: Critical illness insurance pays covered. In 2011 the Association offrom the outset.out a tax-free lump sum if you are British Insurers introduced a set ofdiagnosed as having one of the best practice guidelines.Q: I have already paid off myspecified life-threatening conditionsThe rules include clarificationmortgage, so why do I needdefined in the policy. Policies oftenon when policies will pay out if a critical illness insurance?offer combined life and critical illness claimant suffers total permanentA: If you have paid off your mortgage,insurance. These pay out if you aredisability. All policies automaticallyand your mortgage protection policyA Guide to Critical Illness Protection 3. A Guide to Critical Illness Protectionincluded critical illness insurance, be paid into a trust fund from whichbut you still have dependants - youthe children will benefit directly. TheCritical illness insurance policiesshould have a separate critical illnesspolicy cannot be in the name of theare very accessible and these days,insurance policy. It will enable you tochildren, however. n there are literally hundreds ofpolicies available. When choosingcontinue to protect your family shoulda policy, you should avoid simplythe unthinkable happen to you.choosing the cheapest. Similarly,the most expensive will probablyQ: Why do I need critical illness Nearly two-thirds of thecover you against every diseaseinsurance cover as Im separatedpopulation has no formimaginable, and you may not needof financial protectionfrom my partner?such detail in your policy.if they become criticallyA: If you are unfortunate enough The good news is that medicalill. Advances in medicineto have to go through divorce advances mean more peopleand technology alsoproceedings but are awarded custody than ever are surviving conditionsmean that more people areof the children, you could ask your that might have killed earlierliving longer and survivingformer spouse to take out a criticalgenerations. For example, moreillnesses that used to bethan 90 per cent of men diagnosedillness insurance policy. If your formerfatal. In research conductedwith testicular cancer are still alivepartner is required to pay maintenanceby insurer Aviva, most peoplefive years later, while more thancosts but is unable to work, the moneyaged 45 to 54, who are in80 per cent of women diagnosedspent on the children may even stop.the age group most likelywith breast cancer have the same If you set up a critical illness to claim say they cannotsurvival rate, according to the Officeafford protection.insurance policy, the money could for National Statistics.Need help?To discuss the optionsavailable to you or to reviewyour current provision,please contact us.A Guide to Critical Illness Protection 4. Content of the guide featured is for your general information and use only and is not intended to address yourparticular requirements. It should not be relied upon in its entirety and shall not be deemed to be, or constitute,advice. Although endeavours have been made to provide accurate and timely information, there can be noguarantee that such information is accurate as of the date it is received or that it will continue to be accurate inthe future. No individual or company should act upon such information without receiving appropriate professionaladvice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as aresult of acts or omissions taken in respect of any articles. Tax laws are subject to change, possibly retrospectively.Published by Goldmine Media Limited, Prudence Place, Luton, Bedfordshire, LU2 9PEArticles are copyright protected by Goldmine Media Limited 2012. Unauthorised duplication or distribution is strictly forbidden.