Critical Illness Articles
What Can Critical Illness Cover Benefits Pay for ?
Thousands upon thousands of people have obtained financial relief through the benefits provided by a critical illness cover. Critical illness cover is a form of insurance that provides a one-time lump-sum benefit if you should ever be diagnosed with an approved disease or injury. Typical critical illnesses include cancer, heart disease, stroke, multiple sclerosis, major organ transplant or failure, serious head trauma, or paralysis.
If you are unfortunately diagnosed with a critical illness, you not only face emotional and physical challenges, but financial ones as well. Consider the following ways in which a critical illness cover can help you stay current on all of your financial obligations.
Benefits are Tax Free
The benefit from a critical illness cover varies in size depending upon the amount for which you applied. Typical ranges for critical illness benefits are £20,000 or £30,000 up to £1 million. A higher benefit will require higher premium payments, but the amount for which you are eligible on an approved claim is tax-free. You receive the full face value of your benefit without the worry of paying any amount to the government.
Medical Bills
Critical illness involves extensive medical care, which translates into tremendous expenses. For example, cancer patients require pre-surgery, surgery, post-surgery follow-up, and continuing radiotherapy treatment. Multiple sclerosis is a progressive neurological disease that requires frequent physician check-ups and constant refills on prescription medication.
Many beneficiaries use part or all of the benefit amount to help pay for medical bills that are not covered under a regular medical health cover. With a tax-free benefit from a critical illness cover, a patient can put his or her mind at ease about being able to meet these expenses.
Your Mortgage
Many people request a critical illness cover to simply help pay large financial obligations should the insured become unable to earn a continued living. A mortgage is a good example. If you were disabled and not able to earn a living, would you be able to prevent a foreclosure and risk losing your home?
Many critical illness covers are designed with a decreasing benefit amount that will cover the decreasing amount of your mortgage year after year. These are more affordable, as the premiums are reduced year after year as well.
Some mortgage companies will actually require a borrower to take out a critical illness cover at the time of a mortgage application as a condition of mortgage approval. The beneficiary, however, would be the mortgage company, which is an additional safeguard for keeping a mortgage current if the borrower becomes disabled.
Any Expense at Your Discretion
Of course, most critical illness covers allow an insured to use a benefit however he or she deems fit. Whether it is to help pay a mortgage, rent, medical bills, groceries, auto payments, or anything else you need, the tax-free critical illness cover can help make ends meet.
If you are diagnosed with a critical illness, the last worry on your mind should be financial. With a critical illness cover, you can focus on your family and health – and not mounting medical expenses and household bills.
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