If you have financial commitments
Critical illness insurance is, of course, optional. It’s one of those things, like any insurance, that could just be a cost with no benefit. One hopes it would, in fact, never be needed. However, it you have financial commitments and want to protect your financial position and your family’s future, it’s critical to consider the implications of not having cover.
Critical illness insurance for doctors and dentists
Naturally, everyone wants to live a healthy life, accident free and without sickness. Unfortunately though everyone is aware that our desires are not always matched in reality, and incidentally, preparing for that is a big part of life.
Illness and accidents can strike at any time and rarely are they anticipated.
1 million people in the UK every year find themselves unable to work due to serious illness or injury, according to Association of British Insurers (ABI)
CIC offers a lump sum payout
Critical illness cover (CIC), as the insurance is also known, typically pays a lump sum in the event of diagnosis from a specific list of illnesses and conditions. Each policy differs in their terms and some policies are more comprehensive than others, but key to each policy is the understanding of the word “critical”.
Examples of critical illnesses include:
- heart attack
- stroke
- multiple sclerosis
- various types of cancer, at various stages
Most critical illness insurance policies also cover permanent disabilities from illness or injury. As a doctor or dentist who is reliant on being in perfect health to perform their role, even what could be considered a minor injury, but one that means being unable to work, could be covered, depending on the insurer.
According to research from HeartUK:
– Every 7 minutes someone in the UK has a heart attack.
– Every 12 minutes someone has a stroke.
– Medical advances means survival rates are always increasing
– But long periods off work are frequent
How Critical Illness insurance could help you
The lump sum payment, which is tax free, can be spent how you wish.
It can help give peace of mind at a difficult time to ensure financial commitments are met by paying off the mortgage. Or, if adaptations are required for your home, the pay-out could go towards ensuring your lifestyle remains as comfortable as possible whilst you make steps to recover from your illness or injury.
The key aim with CIC is to reduce stress and pressure in the event of being unable to work and meet those financial responsibilities yourself.
“I am writing to say thank you for your good advice 11 years ago regarding critical illness cover, as this has reduced my worries about our home being taken away if I could not afford to pay off the mortgage.” Dr A.G
In all cases, CIC should be considered if:
- You are self employed or director of your own limited company and don’t have an employee benefits package to cover being off work for long periods
- You don’t have sufficient savings to cover financial commitments plus any additional private medical costs
If you have sufficient savings to be able to continue with your current lifestyle or a partner who would be able to do so, then CIC may not be required.
Read how Critical Illness Cover helped some of our clients to pay off their mortgage when they needed it the most.
How much does CIC cost?
The insurance varies in price depending on a number of variables, including the answers to the following questions:
- How old are you?
- Do you smoke? Or did you?
- What is your profession?
- What is your current health condition? Are you over weight?
- Do you have any family medical history?
- What is the amount of cover required?
If a condition has been diagnosed before taking the insurance then it is likely this will be excluded. And this type of insurance doesn’t cover upon death – for that Life Cover is required.
Before you go…
Don’t forget to download our free FactSheet all about Critical Illness Protection.
Dental & Medical Financial Services help thousands of doctors and dentists select the best insurances for them in the unforeseen eventuality they may need it. Call to speak with Darren, specialist and independent financial adviser.
Tel: 01403 780 770