How will you pay your mortgage if you are unable to work for a long period of time due to suffering from a serious illness such as a heart attack, stroke or cancer? If you are the sole income earner, will you be able to cope financially and run your household as usual?
Serious illness cover, or critical illness cover, insures you in the event that you contract an illness that will drastically change your life. A lump sum will be paid to you two weeks after you receive a diagnosis. Some policies pay out a smaller sum in the event that you are diagnosed with a less serious illness.
Serious illness cover can help contribute to your medical bills, buffer against lost income, go towards home adaptations and even pay off your mortgage.
Why should you take out serious illness cover?
Unfortunately in Ireland, 1 in 4 women will be diagnosed with cancer at some stage of their lives. This rate rises to 1 in 3 for men. Every year in Ireland there are over 20,000 new diagnosed cases of cancer. Also over 10,000 people suffer a stroke in Ireland every year. Therefore it’s extremely important for everyone to at least consider serious illness cover.
How can serious illness cover be set up?
This type of cover can be set up in a variety of different ways. The two most popular types of cover are:
- Stand Alone: As the name suggests, this is serious illness cover on its own with no life insurance attached
- Accelerated: Accelerated Life insurance cover is serious illness cover provided with life cover and mortgage protection