Why seek protection?

As a contractor you can experience various work-related pressures that can take a serious toll on your health. Such lifestyle related illness could have a profound impact on your financial situation.

"Critical Illness Insurance pays out a lump sum if you are diagnosed with any of a range of serious conditions, which include cancer, heart disease, strokes and multiple sclerosis."

 

The facts

Advances in medicine/medical science mean that even when diagnosed with a very serious disease, you are likely to survive for some time. A cash lump sum helps ease financial worries while you are undergoing treatment and recuperation.

When buying critical illness cover you must decide how many conditions you want covered, and how much cover you need. You must also decide how long you want the policy to last and whether you want to include it as part of your life cover.

 

The Cost

The cost of buying cover is likely to be a major consideration. It may appear to be expensive compared to life cover but this is because you are two-and-a-half times more likely to suffer a critical illness than you are to die before the age of 65.

This cover can do more than just settle debts or an outstanding mortgage; it will pay out a guaranteed lump sum (or income if provided within a Family Income Benefit policy) on diagnosis that can help you to pay for medical bills, adjustments to your home to help cope with the illness, or recuperation.

 

Did you know...

• Over 50% of all critical illness claims made in 2007 relate to cancer.
• The most common age of a claimant in 2007 was 45 and 71% of all claimants are aged 50 or under.
• Around 8000 women under 50 are diagnosed with breast cancer each year in the UK.
• The most common cause of cancer for men aged between 20-39 is testicular cancer.

Multi-benefit Cover:

Critical Illness cover can work in tandem with Income Protection (Permanent Health Insurance) to provide the greater security and reassurance that comes with a more comprehensive cover plan.

With Income Protection you receive a monthly income which would stop once you were assessed as having made a satisfactory return to health. Alternatively, Critical Illness policy would pay out a lump sum that would be yours to keep, regardless of whether you have returned to good health.

Important Notice: Unfortunately due to an expected increase in claims because of early screening for prostate/breast cancer, the re-insurers that underwrite these policies are putting pressure on providers and the provision of this type of cover is under constant review.

The current comprehensive lists of illnesses covered are likely to be watered down to make new policies less likely to result in a claim. These changes and increased costs can only be applied to new policies and Freelancer Financials strongly urge you to review your current circumstances now to ensure that you would be adequately protected in the event of such illnesses. Unfortunately, this is not an issue that you can afford to simply set aside for another time.

To find out more request a free quote or call us for a quote today on 020 8421 7998