Medical science has come a long way and is constantly improving, which means many ailments and diseases which would once have proven fatal are now thankfully treatable. However, if you do suffer a critical illness such as a heart attack, stroke, cancer etc, there can still be serious financial consequences for you and your dependants. You may not be able to work for a protracted period while you recover, you may find that you are unable to return to your old job and unfortunately some ailments can still prove fatal.

Critical illness cover (CIC) is designed to pay a lump sum should you be diagnosed with certain life-threatening or debilitating conditions. You can use the payout to pay for medical treatment, to pay off your mortgage, to take a recuperation holiday or for whatever you want.

Many people buy CIC when they take on a major commitment such as a mortgage, while others buy it simply as an additional form of protection for themselves and their family. It can be bought as a stand alone policy, or can include life cover so that it pays out once if you are diagnosed with a specified ailment or once if you die from any cause. However, if you do include life cover there is often the option for double protection so should you be diagnosed with a serious condition such as cancer, survive for a specified period but subsequently die, the policy pays out the lump sum twice.

Not all policies are the same, especially when it comes to the medical conditions that they cover. Similarly, the point at which a payment may be triggered varies, with some policies paying on diagnosis while others only paying out if the ailment is of a particular level of severity. It is therefore imperative that you understand the different levels of cover provided by different companies and policies. Remember they do not cover any sickness that might affect your ability to work, just the ones they specify.

The cost of CIC is determined by a wide variety of factors such as your age, sex, current health, previous medical conditions and type of employment. The sum assured (i.e. the size of the lump sum payment) will also affect the premium. Of course you may need to change the sum assured over time as your circumstances change (e.g. if you have more children), so some policies do offer the option for you to increase your protection.

As with all financial products, it is essential that you give full, honest answers to questions you are asked, especially concerning your own and family medical history as failure to do so could invalidate your policy.

If you are thinking of arranging a CIC policy, have a talk with your Independent Financial Advisor. They will be able to help you decide what cover you need, advise you on which products might be right for you and even help you to arrange such cover.