Critical illness policies are designed to pay a lump sum on diagnosis of specified critical illness during the policy term. But it’s a little more complicated than that.
With Critical Illness Cover, its not uncommon to be confused about the cover you have, it often comes with specific exclusions, and it’s easy to think you’re protected when you’re not. Taking pains to check the terms of your policy when you’re setting it up can save you a lot of trouble later on.
Different illnesses may be covered by your policy. For example, a policy may only pay out depending on diagnosis of certain cancers, and stipulate on the severity of a heart attack.
Disclosing your medical history. You should provide your insurer with as much detail as possible about your medical history upon taking out a policy. If you are found to have omitted any details about your health, you may not be covered if you need to make a claim.
Your policy may have a survival clause. If you were to die within a few weeks* of your diagnosis, you may not receive any payment from your critical illness cover. This is because critical illness insurance is designed to pay out a lump sum to the policy holder to provide financial support whilst they recuperate from their illness.
*The actual length of the survival period may vary. Check the terms of your protection policy.