A critical illness can affect anyone, at any age, and can turn your life upside down yet only a fraction of the population is covered. In the event you are unable to work due to a critical illness, having a financial safeguard in place is essential so you can focus on resting and recovering, not how you’ll be paying for everyday expenses.
This does not constitute advice and advice should be sought in all instances before acting on it.
Our Protection Spotlight series will take you through the four key elements of a robust wealth protection plan: Life Insurance, Critical Illness Cover, Income Protection, and Estate Planning.
Critical Illness Overview
Critical Illness Cover is a long-term insurance policy that provides a tax-free payment, in the form of a lump sum, if you are diagnosed with one of the illnesses covered in your policy document.
The money you get from your pay out can help pay for your mortgage, rent, debts, groceries, or even alterations to your home to accommodate new medical needs, such as wheelchair access, should you need it.
All CIC policies will cover cancer, heart attack, and stroke, as well as other life threatening or potentially debilitating, but not necessarily fatal conditions.
The level of coverage you require should be catered to your needs.
A more comprehensive policy will cover many more serious conditions, including loss of sight, permanent loss of hearing, and a total and permanent disability that stops you from working entirely.
Some policies even cover against the loss of limbs. But not all conditions are necessarily covered. The expanded list of illnesses included in your policy will vary by provider and policy, so be sure to check your policy document for specifics. Don’t forget to check the exclusions in your policy too.
Very few policies will pay out as soon as you receive a diagnosis covered under your policy and most will only pay out after a ‘survival period’. Essentially, if you die within the specified number of days of meeting the definition of the critical illness given in the policy, the cover would not pay out.
Coronavirus impact
The number of critical illness policies secured by people skyrocketed after the outbreak of COVID-19 despite fears of the virus not being covered under policies. Those fears were unfounded, and the application process for insurance only altered slightly to adapt to the new world.
If you need to make a claim on a critical illness insurance policy as a result of coronavirus, insurers are committed to handling it just like any other insurance claim. So there’s no need to worry about lost income while you’re out of work because of a critical illness or its long-lasting effects. You can still take out CIC policies that include COVID-19, so there’s no excuse to remain unprotected.
Do you have suitable cover?
Doctors, medics, dental professionals and medical professionals know all too well the hectic lives they lead, especially in the midst of a pandemic.
If you have a lot to lose in the event of an accident, illness or death, do you have a financial net in place for you and your family if you lose your income? Do you know what your options are concerning an ill health pension or sick pay? Figuring out what exactly you’ll need to get covered might seem overwhelming, but not if you have help.
Working with a professional
Our advice is built around your personal and professional needs and circumstances. An adviser will create a bespoke plan for you but will likely include:
- Income Protection: A monthly, tax-free sum paid out to you if you’re unable to work due illness or injury.
- Life Insurance: A lump cash sum, usually tax-free, paid out on death of policy holder.
- Critical Illness: A tax-free sum, paid out if serious illness or injury prevents you from being able to work.
- Estate Plan: Craft a will, set up trusts, assign power of attorney, choose executors and trustees all to ensure your family is taken care of once you pass.
Protecting your wealth in case the worst happens should be a top priority. Working with an independent financial adviser is crucial to ensure you have comprehensive cover. That could be life insurance, but also any additional policies that could help provide peace of mind for a hard-working dental or medical professional. Call us today to get started on your wealth protection plan.
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Dental & Medical Financial Services have been helping doctors and dentists to build and protect their wealth, whilst saving tax for over 25 years.