How will a critical illness claim be paid?

If you have a claim a Critical illness policy pays you a tax-free lump sum normally by cheque. Then, as soon as you receive the payment. the policy will terminate.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

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The following might help you decide how much cover you need.
How much would you need to repay your mortgage, overdraft, loans or any credit card balances? The freedom that comes from being debt free does wonders for recovery
What decisions will you have to make before you can get a quotation?
You will have to make four decisions:
Will Critical Illness policies permit the use of alternative medicines?
After you have been diagnosed with a qualifying Critical Illness and the claim has been paid you can spend your money however you like. So if you want to spend some of your money on alternative medicines then that’s entirely your choice.
Are You Allowed To Continue Working After A Critical Illness Claim?
Once an Insurance company has paid your claim it has no interest how you live your life or what you go on to do.
What if you develop another critical illness or have a reoccurrence of a Critical Illness ?
After a successful claim the insured sum will be paid to you and that ends the policy. There can be no further claims.
For a claim to be valid, a policyholder has to be diagnosed as having a serious illness which is included in the list of insured illnesses issued by their insurance company. This list will be found in their Key Features Booklet which you will receive within the Application Pack we send to you.

Please note that all insurance companies require you to survive for a specified number of days following your diagnosis in order to make a valid claim. This “survival period” is normally 28 days although some insurers have reduced it to 14 days.

The proceeds of an insurance claim are free of income and capital gains tax. There are no deductions. This means the entire amount of your claim is available for you to spend in any way you decide.

Frequently Asked Questions related to the above topic.
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