5 reasons to take out a critical illness policy

5 reasons to take out a critical illness policy

November 10, 2022

It shocks us when we find out some people still haven’t heard of critical illness cover. So here are 5 of our top reasons why you should start thinking about arranging a critical illness policy for yourself.

1. You have children

The top reason for getting a critical illness policy (or any sort of life insurance) is probably the most obvious – you’re a parent. If you make the decision to have children, selfishness goes out of the window and everything becomes about your little ones .With a critical illness policy in place, you and your children would have a financial safety net if you were to be diagnosed with a critical illness.

Looking at last year’s claims data from Legal and General (2021), the average pay-out from a critical illness policy was £72,473. Consider how much a cash lump sum like this (or a higher or lower amount) could help your loved ones if the worst case scenario happened.

2. You’re in good health

Your critical illness policy will be kept in place by you paying monthly premiums and these premiums will be calculated using several different factors. One of the factors that holds the biggest bearing when arranging your cover is your health. The reason for this is being that life insurance providers are all about risk, so the healthier you are – the less of a risk you tend to be to the insurers.

Also, the price you secure now for your policy will stay the same throughout the duration of your term length! So long story short – if you’re in good health, now is the time to sort your life insurance policy. Waiting around is only likely to mean you’ll pay more money later down the line.

3. You’re a worrier

These days, all you need to do is watch the news for half an hour and it’s enough to plant the seeds of an existential crisis. But there are some people who are just natural born worriers. Having any type of life insurance in place will provide you with that all important peace of mind but especially a critical illness policy.

The pay-out from a critical illness policy can be used whilst you are still alive which differs from your typical life insurance policy where the lump sum will be paid out when you have passed away. Being able to access the pay-out from your policy whilst you are still alive means that you not only have a say over what happens with the money but you also can benefit from it yourself.

4. You’re young

Not a lot of people seem to know that the younger you are, the cheaper your life insurance premiums tend to be! The reason for this being, typically the younger you are, the less ‘at risk’ you are of getting seriously ill or passing away.

One of the reasons so many young people put off looking into life insurance is because they think they don’t need it. However, just last year (2021) Legal and General paid out 477 critical illness claims to people between the ages of 20-39. No one knows what is around the corner and being young means you could secure some seriously cheap life insurance premiums.

5. You have a mortgage

For so many people, getting a mortgage is the ultimate goal in life and with how difficult it is to get one these days – it’s a big achievement! But have you considered how you would pay back that huge debt if you were to become critically ill? A critical illness policy can help soften the blow.

The pay-out from this cover could ensure that you and your loved ones have that all important time if you were to be diagnosed with a critical illness. Whether this is time to make memories, time to get a plan in place or just some worry-free time spent with loved ones.

At The Official Mortgage Company, we can help you find the right critical illness policy, depending on your circumstances and affordability. Why wait, start your life insurance journey today by  giving us a call today on 01777 809700 or email admin@officialmortgages.co.uk to arrange a chat. 

Your home or property may be repossessed if you do not keep up repayments on your mortgage.

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