critical illness protection

Why is critical illness protection necessary?

Wednesday 17 January, 2018

Thomas Oliver’s Hertfordshire Insurance Broker and protection specialist, Ellie Newman, considers why he advises Thomas Oliver’s clients to consider critical illness protection. 

Ellie Newman, Insurance Broker and protection specialist in Cheshunt said:

Critical illness cover is one of the key fundamentals when looking into financial protection. Firstly it is important to understand what it is and how it works as an insurance policy.

Critical Illness cover is designed to pay out a lump sum to the individual if they are diagnosed with a critical illness that is covered by a particular insurer. There are two key elements within the definition. 

The ‘lump sum’ is dependent on how much critical illness cover you want to purchase and the price you want to pay. The next issue is whether a particular critical illness is covered by an insurer. This is completely dependent on the provider you choose, as all providers have different illnesses and definitions that they cover.

According to Legal & General consumers are typically concerned with 4 types of illnesses that make up 85% of critical illness claims. These are Cancer, Heart attacks, Strokes and Multiple Sclerosis.

Ellie Newman, Insurance Broker and protection specialist in Cheshunt said:

‘When I meet clients for financial and mortgage planning I recommend they consider purchasing protection policies if it is relevant to their financial situation. With respect to critical illness cover I will always review a policy and discuss the estimated lump sum payment with a client. I also review a range of providers to ensure that my client purchases a critical illness cover which is suitable for their requirements. The media has recently highlighted situations where people have purchased critical illness cover and didn’t realise that certain illnesses were excluded from their policy. In these instances they were unable to receive a pay out as a result. It is essential that you review the different types of critical illnesses within your policy before you purchase it. Also check the definitions the provider has included to make sure you are adequately covered. For critical illness cover I make sure that I only use insurance providers that have the very best definitions for the four main types of critical illnesses and that the critical illness plan my clients choose is tailored to suit their needs and concerns.’

Ellie Newman, Insurance Broker and protection specialist in Cheshunt continued:

‘When clients purchase a critical illness policy I encourage them to review their policy at least annually. It is really important that you review your policy. Over time, technology and medicines advance so today’s policies will encompass more illnesses and generally offer better illness definitions. I would recommend all my clients regularly review all their protection policies. If you are looking to purchase critical illness cover, or you want to discuss protection policies in general Thomas Oliver offer a free one hour initial consultation. For more information call me on 01707 872000.’

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