The risk of succumbing to a critical illness before the age of 65 is considerably higher than the risk of mortality. It is therefore an important part of any financial protection strategy.
Critical illness cover is particularly suited to anyone without financial dependants.
Critical illness policies pay a capital lump sum in the event that the policyholder is diagnosed as suffering from any one of a number of specified critical illnesses.
Such policies differ from private health insurance which will only pay for the cost of medical treatment. By contrast, critical illness policies will pay out in the appropriate circumstances regardless of whether the policyholder is receiving treatment privately or under the NHS.