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Insuring Illness

By: Aja Sollors

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Just over 22% of the British population will suffer a serious illness before they reach retirement age. The financial pressures caused by the resulting loss of earnings can be extra stress in what is already a difficult time. Critical Illness Cover (CIC) is a form of insurance that is designed to help deal with your financial duties in just such a situation.

CIC policies cover for many of the major illnesses, though they vary a little from lender to lender. All policies will include: cancer, heart attacks, kidney failure, MS, strokes, organ transplants, and heart bypasses and will also pay out in the event of the policyholder suffering a permanent disability and possibly some other, less common illnesses.

You will notice, however, that HIV/AIDS is not included on that list, and there are very few policies that cover for it. Many policies will also not pay out in the event of the policyholder developing a non-invasive tumor.

When you''re looking for a policy it''s important to remember that even if a certain policy doesn''t cover certain illnesses it''s not necessarily a bad policy. There''s little point taking out a policy that covers yellow fever, for example, as you''re not that likely to contract it and you''ll just be paying more for the additional coverage.

With so many forms of life insurance and illness cover around it can be difficult to distinguish between them. CIC is distinct in as much as it offers one, large, tax-free lump sum to deal with any financial responsibilities on the event of the policyholder being diagnosed. It''s a particularly good idea for single people with no dependents, as the lump sum can deal with all immediate financial issues whereas life insurance may be less relevant due to the policyholder not having any dependents.

It can also be particularly important if you do have dependents, especially if you''re the main earner in the house. Of course there''s no reason not to have both CIC and life insurance, but make sure that you check the policy documents thoroughly unless you can afford to pay two sets of premiums that may overlap in what they cover.

In the last few years the cost of a CIC policy has gone up quite dramatically. As medical treatments and technology advance (and become more expensive) so to do the premiums. So if you''re considering getting CIC it''s better to take out a policy sooner rather than later.

CIC can be an extremely important form of cover to have. If you do have a policy, look for one that pays out quickly in the event of you developing an illness, some policies require a waiting period of as much as a year, and if you''re seriously ill you often will need the money immediately. For further advice, check out the Association of British Insurers for the full list of illnesses covered and added information on what you should expect from your policy.

Article Source: http://depositarticles.com/

Aja Sollors took out critical illness cover with Legal

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