19th September 2019
If you were to become seriously ill, or have an accident that prevents you from earning, will you and your loved ones be able to cope financially?
It’s not a scenario that any of us want to consider but the reality is that UK employees could be on the breadline in just 32 days. If you believe your loved ones may struggle to pay the mortgage or keep up with the household bills if you have a serious illness, then it’s worth considering taking out a Critical Illness policy. Here’s how you can financially protect your loved ones with Critical Illness cover.
Critical Illness cover is designed to pay out a lump sum when you’re diagnosed with a terminal illness that results in an ongoing disability. This lump sum will enable you to financially protect your loved ones.
The lump sum paid out from a Critical Illness policy can be used to pay off the remainder of your mortgage. The payout can also be used to keep up with household bills and your family’s lifestyle.
If you require it due to your illness, the payout can help to pay for changes need to the home, or pay for a new car to accommodate a reduced state of mobility.
A study conducted by Legal & General found that, on average, UK employees have just over £6500 in savings, yet they believe they would need at least a further £9830 to feel financially secure. The payout received from a Critical Illness cover payout will stop you from dipping into your savings which could be used to financially support your loved ones in other ways.
The variety of conditions covered differs between insurers but there are typically seven core conditions that are covered by all Critical Illness policies:
You may also be covered for permanent disability caused by an illness.
Having Critical Illness cover in place will give you the peace of mind that, no matter what the future has in store, you and your family will be financially secure – this especially important as a Contractor when you aren’t protected by an employer and work for yourself.
At Broadbench we’ve learned that, as a Contractor, you’re likely to be the main breadwinner in your household. You are also at a high risk to suffer from a serious illness – making the value of a policy like this indubitable. Beyond this, if your family solely depend on your salary to maintain their lifestyle, you may also be interested in Income Protection. Income Protection is a long-term insurance policy designed to help you if you can’t work or earn because you’re ill or injured. It ensures that you continue to receive a regular income until are able to return to work or retire, whichever comes first. This differs from Critical Illness cover which only covers you in the instance that you are critically ill. You can find out more about Income Protection here.
If you’re looking to financially protect your loved ones with Critical Illness cover, get in touch with one of our expert Contractor protection specialists.
All content is accurate at the time of publication
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