To ensure that the pay-out is triggered, the policy-holder must survive a minimum term to ensure that this is considered a survivable illness, usually about 28 days. Up to two dozen different illnesses can be covered by the policy and they are all survivable to a greater or lesser degree but with improving medical technology the probability of living a full life after diagnosis is increasing.



A lot of people consider this type of insurance a must for any mortgage protection policy. The reason for this is if you do suffer a heart attack, stroke or cancer, but to name a few conditions, having your mortgage paid off almost immediately can be a great boost to aid recovery were possible.

Whilst most critical illness policies do pay out a lump sum you can get some plans that pay out a monthly or annual benefit. This means that it can be used as an income replacement policy. That said Critical illness insurance is no substitute for income protection insurance as the trigger point for a claim is diagnosis of a critical illness and income protection policies can pay out if you are just off work due to sickness and disability which could be considered far less than what is needed for a critical illness claim.

Examples of critical illnesses include the obvious, such as cancer, stroke, and heart-attack as well as less common conditions such as Alzheimer's, blindness, deafness and the failure of other major organs such as the kidneys.

This type of policy (which can also been known as Living Assurance or Serious Illness Insurance) has such obvious benefits in everyday life and might seem like it has been around forever, like life insurance. But in fact the first plan was only created as recently as 1983 by Dr M Barnard who termed it cover for "Dread Disease." His foresight against the unexpected has made many lives easier today.

It should be noted that in order to qualify at outset for critical illness insurance you must be in good health at the outset of the plan. Due to the fact that critical illnesses can strike anyone at any time and the fact that there is a large list of the conditions that do apply and can be claimed upon, insurers are very careful in their underwriting procedures to ensure that they are not exposed to any undue risk.

Critical illness insurance can be quite a costly plan at the best of times that said it is always better to take out the plan the younger you are. This is due in no small part to the fact that the risk of contracting a critical illness does increase sharply the older you get and for this reason some insurance companies will not insure anyone over the age of 65. However there are some, very few, who will still offer cover but at a price over this age.

In summary critical illness insurance is a very valuable plan that can be quite costly the older you get for obvious reasons. It can be claimed as a lump sum, monthly or annually. It can have life cover attached to it which would rule out the need to survive the condition for more than 28 days. Across the globe it is concerned one of the most important versions of life cover and a must as an add-on to any life insurance contract.