What this covers

Critical illness Cover insurance can be added to a traditional life insurance policy or purchased as a separate item – the objective being that if the policy holder becomes ill from predominantly life threatening conditions a lump sum is paid out to offset the inconvenience of the incapacity; in most life insurances this is 27 to 34 major conditions.

Serious illness cover from some insurers is very similar but often covers more conditions and pays out based on the severity of the condition, and will pay out more than once even for repetitive conditions.

Who needs this the most

With nearly 4 x more conditions covered by serious illness cover from some UK insurers, an accident all the way to a major illness would prompt a payout. In the present financial climate nearly any incapacity no matter how severe would affect the ability to earn and depending on condition would bring additional costs of healthcare and lifestyle changes.

So those who need this cover most would be anyone at potential financial risk should they not have sufficient savings in the event of being unable to work short or longer term.

By selecting serious illness cover rather than a traditional critical illness cover life insurance product the policyholder can spread their risk over far more debilitating conditions.