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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What is Critical Illness cover?
Critical illness cover is an insurance which pays you a tax-free sum of money if you are diagnosed as having a serious,
Why do you need to consider a new Critical Illness policy if you already have one?
Because older policies were often limited in the illnesses they covered; your own circumstances may have changed; you may now need to increase the sum insured.
How long should you insure for?
20 to 25 years is most common but it really depends on how much you can afford and your personal circumstances.
What is “Total and Permanent Disability”?
“Total and Permanent Disability” means that if you are diagnosed with any illness, or have an accident, that totally and permanently prevents you from working, you have a valid claim.
Will a claim for critical illness affect any State Benefits?
No, it should not affect your claim for State Benefits.
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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