With over two-million people in the UK living with Coronary Heart Disease (CHD) and more than two and a half million having been diagnosed with cancer, the need for critical illness cover cannot be underestimated. While few realise it, the reality is that a diagnosis of serious illness can have a significant financial impact on the individual and his or her family. In fact, a report by Macmillan Cancer Support found that more than 83% of those diagnosed with cancer were, on average, £570 a month worse off.
The reality is that while the cancer care itself may be predominantly free, other expenses can escalate as a result. Consider the transport costs incurred in regular to and from travel to the the hospital, for example. The ability to continue working and therefore earning is also threatened. The Macmillan report noted that 30% of cancer patients were affected by a loss of income, losing an average of £860 a month, while a third stopped working either permanently or temporarily. The stress of a serious illness combined with financial burdens can take a significant toll on the family. Under such circumstances, families may struggle to continue paying a mortgage or other monthly expenses.
Critical illness cover is a type of insurance that pays out usually in the form of a lump sum when you are diagnosed with a serious illness, such as heart disease, some cancers and other illnesses. Some policies also cover injury and permanent disability but the terms of the policy will differ from provider to provider, so be sure to check the terms and conditions of coverage. A 2014 study by the Association of British Insurers found that most critical illness insurance policy payouts averaged £60,400. The sum can be used to cover unexpected costs, keep up with mortgage payments or pay off debts.
Such cover is especially useful for individuals without savings or with limited employee benefits packages, who may struggle to make ends meet after diagnosis. Financial needs may not be covered by the welfare benefits available and in such cases this type of cover can provide a much-needed lifeline.
For more interesting reads about the UK economy and its impact on your financial health, visit our site regularly, and for details on Rated Financial Advisers’ critical illness cover options, contact us today on 02084324566.