Serious Illness Insurance
Why is it so important?
Recently a customer called Chill to apply for Mortgage Protection. We spoke about the benefits and additional cover options associated with life insurance protecting the mortgage also. It was at this point in the conversation that they told us that, although they were seeking out mortgage protection cover, they would like to know more about serious illness protection, and how their mortgage can be protected against this event also.
Although mortgage protection and personal life insurance are most widely known among most Irish policy holders, we believe that serious illness cover is one of the most underplayed, and under-promoted, protection products you can have.
WHAT IS SERIOUS ILLNESS?
We impart our knowledge on customers who approach us daily, but what about the people who don't have any idea about serious illness and if they could ever even afford it?
This particular policy can be invaluable to people who are diagnosed with a serious illness within their lifetime. The policies are all similar, but have distinct differences that can give you different ways to use the policy depending on the serious illness and the severity of it. Each insurer's policies differ slightly, including their list of illnesses covered, so make sure you ask for more information when you are applying about the best cover for you.
Right now, you may be somewhat hesitant in approaching a broker with questions about taking out serious illness insurance because: you have a family history of a certain illness, you don’t believe you will ever get an illness listed on the policy, or you can’t afford much so there is no point in applying. However, these are the reasons to apply and see if this cover is for you.
You may have a series of questions running through your head such as:#]
- What defines my illness as being serious?
- What happens if I put down that I am a non-smoker and start smoking in the future? Will they cancel my policy?
- What are the benefits of having serious illness cover?
Do these sound like the kind of questions you asked yourself? For some of us, it might not be until you see a relative, friend or close family member suffer from a serious illness that you realise the potential benefits of having a serious illness policy in place. But don’t wait, act now.
DO I NEED SERIOUS ILLNESS COVER?
The likes of Crohn's disease, obesity, kidney disease and various types of cancer are leading to increasing claims on serious illness policies with our life company partners.
Take a moment and imagine the following scenario. After a consultation your doctor gives you the news that you have cancer, the doctor will treat it and you have a good chance of survival, but you will have to go through Chemo. Because of the treatment you will have to take time off work.
If this was the case, how would you plan on paying for the following?
- Your mortgage (if you currently have one).
- The bills from your hospital.
- Treatment plans.
- Personal loans or other debts.
- Food, light and heat
Next, your attention may turn to your family and loved ones. How would you plan on supporting them, and yourself, while you are out of work receiving treatment?
In some cases, your employers may have you covered under a sick pay or income protection arrangement, or you may have your own serious illness cover in place. It is important to remember, at all times, that a serious illness policy will not replace your full income if you were out of work because of a long-term illness, but it will give you a lump sum to cover such costs.
Serious illness insurance will only pay out if the illness is covered by the policy. However, all of our insurers cover the major illnesses and conditions such as:
- Heart attacks
- Kidney failure
Many shorter term illnesses that may prevent you from working may not be covered by your policy, so make sure you check with your broker or the Chill Life Team when you are taking out your cover.
HOW WOULD IT BENEFIT ME?
Specified illness pays out in your lifetime, it benefits you, and it will help you recover from your illness, making your life easier. You don’t have to worry about rushing back to work to be able to pay your bills; all you have to do is concentrate on getting better.
There is a one in three chance you will get a serious illness in your lifetime so having a serious illness policy, even if it is just a small amount, is always a good idea.
HOW MUCH DOES IT COST?
Like life cover, the premium for specified illness cover is calculated depending on your age, smoker status and your health status so it always differs from person to person.
The emotional impact of dealing with a cancer diagnosis can be very difficult. On top of this is the added financial stress of continuing to pay bills and supporting your family.
Cancer Cover offers much more than a financial benefit, it offers peace of mind. The living benefits that this type of life insurance policy can offer are in place to provide financial and emotional support to you and your family during difficult times.
If diagnosed with a cancer that is listed on the insurers list, policyholders will be paid a lump sum in order to help with medical costs and any other financial commitments. This type of cover can be extremely beneficial as it can remove the uncertainty over your finances and will allow you to concentrate fully on getting better.
Types of cancer that would ordinarily be covered include:
- Breast Cancer
- Prostate Cancer
- Lung Cancer
- Bowel Cancer
- Gynae Cancer
- Testicular Cancer
- Malignant Melanoma Skin Cancer
- Stomach Cancer
Cancer Cover is available to anyone aged 18 to 60, subject to underwriting requirements, on a joint, dual, or single life basis. You can take out cover as a standalone benefit or it can be bundled with your life insurance policy.
Premiums can be found at extremely affordable costs so it’s a worthwhile way of protecting your finances from the effects of cancer.
Every day you wait to apply for cover, you can run the risk of being diagnosed with a Serious Illness, and with each passing year your policy gets more expensive. This type of cover is too important not to have and remember that some, no matter how much, is better than none.