Do I need critical illness insurance?

Published 20 Jul 2015

Critical illness insurance, like many other types of cover can offer financial peace of mind that you will be protected should you suddenly find yourself unable to work.

For people working in some industries it is an important purchase. This is not least because it will ensure their loved ones will continue to be cared for if the breadwinner were suddenly to find themselves out of employment.

What types of illnesses are covered?

There are several types of critical illness that will be covered under a policy. These include but are not limited to the following:

  • Heart attack
  • Stroke
  • Cancer
  • Parkinson's disease
  • Multiple sclerosis
  • Kidney failure and
  • HIV/AIDS contracted through an operation or blood transfusion

It is worthwhile remembering that not all illnesses will be covered such as those that are self-inflicted or gained as a result of a sporting injury.

What can I expect from my critical illness insurance?

As with all insurance policies cover is assessed based on risk. If you're in a higher risk category, then your premiums are likely to be higher.

Once you have taken out a policy, the money you receive from your provider when you need it can be put towards a range of everyday expenses. Depending on your personal circumstances, this might include medical bills, mortgage repayments, or even modifications that might be needed in your home.

Most people don't have sufficient enough savings to plug the gap until they are able to work again if indeed they are ever likely to do so. For others, their employee benefits package won't be sufficient to keep them financially afloat if they were suddenly unable to keep working.

Bear in mind that your policy will only pay out if you suffer from one of the illnesses stipulated by your insurer. Otherwise you cannot expect to receive any money.

What can I do if my policy doesn't pay out?

If you believe you should have received a pay out for your critical illness or the amount you have received is insufficient, there could be grounds for an appeal. Getting in touch with our team of expert superannuation lawyers is a good place to start, particularly as they operate on a no win, no fee basis.

This means you won't pay out unless your case is successful, so you don't have to worry about facing any further financial hardship due to legal costs.

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