Many clients need protection if they cannot work through ill health. There are two types of policy they should consier, income protection and critical illness, one provides an income until recovery and the other, a lump sum. They serve different purposes. Frequently cirticial illness cover is recommended when an income protection policy may be more appropriate
Critical Illness cover – What is it?
A critical illness policy provides a cash lump sum on the diagnosis of a critical illness.
Points to watch out for:
- This is a policy with lots of small print
- The benefit will only be paid out if the critical illness exactly meets the definition of the Insurance Company
- In many cases you could have a long term illness which is not a critical illness and therefore the benefit would not be paid
- You should consider income protection as an alternative or additional cover