Critical illness cover Case Study
Critical illness cover Case Study
Health problems can have an immense impact on our feeling of security and stability, with some conditions or health issues such as a critical illness causing huge distress and disrupting any previous cash flow planning.
Critical illness cover can help protect against this by providing the necessary financial support when you need it. Most severe and limiting illnesses or health issues such as a stroke, organ transplant, heart attack or coronary artery bypass surgery are eligible for this type of cover
It’s also important to note that the condition does not have to be life threatening, but the policy only covers limiting conditions or ones that have a big impact on your health.
Critical Illness cover could be beneficial for you and your family if:
- Your household depends on a single person for financial support.
- You don’t have an emergency fund or savings that would be sufficient to cover loss of earnings.
- You don’t have access to work benefits that would support you during this time.
Therefore, critical illness cover is essentially a type of insurance that can comfortably support you and your family after the diagnosis of a critical illness.
Melinda’s Critical Illness Cover Case Study
The following is based on experiences from our clients.
During her 20s, Melinda had a severe heart condition, resulting in her having open heart surgery and many other treatments that kept her off work.
The recovery stage after these types of surgery is typically quite long and therefore Melinda wasn’t able to work for an extended period of time. Melinda faced a lot of financial insecurity at the time, and this heavily impacted her ability to financially support herself.
Thankfully, Melinda had critical illness cover which served as a safeguard and managed to fully support her through her recovery during her time off work. Had Melinda not had critical illness cover, she have struggled to support herself financially and would’ve had to worry about how she would pay her mortgage and monthly bills, on top of her rehabilitation.
The critical illness cover provided Melinda with a substantial tax-free lump sum which helped her cover her living expenses and any unexpected expenditures she had during this period.
Although there are other alternatives like income protection cover, these typically only provide monthly payments that may not cover all your costs and tend to have specific terms and conditions. With critical illness cover, Melinda had the peace of mind that she would be financially sound and could focus on recovering from her heart surgery. She returned to work 4-months after her operation.
Benefits of Critical Illness Cover
The main benefit of critical illness cover is it provides a substantial lump sum and is readily available whenever you need it. Another well-known benefit of critical illness cover is that is tax-free; ensuring you get the full amount. This makes it a lot more effective and useful than similar and comparable insurance policies, especially if the critical illness will have a long-term impact on income.
This type of insurance policy is also beneficial for financial planning as it can be seen as a type of contingency planning for unforeseen circumstances. Because of this, you’ll be able to save money without worrying about how long your savings would last in uncertain financial situations.
Here are the main benefits of critical illness cover:
- Financial security.
- Lump sum, one-off payment.
- Able to support a family for extended periods of no income.
- Able to cover expensive mortgage payments.
Critical Illness Cover and Health Insurance at Hansford Bell
We understand the importance of financial stability in uncertain times, and have developed comprehensive policies that provide reliable health insurance. Here at Hansford Bell, we offer no-nonsense insurance guidance for our clients.
Health insurance helps cover the costs associated with medical treatments and ensures a safety net is in place in case something unexpected happens like a critical illness.
Our highly knowledgeable team of insurance experts are happy to help see if you are eligible for critical illness insurance and find the right solution for you. Get in Touch today to find out how we can help!
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