CRITICAL ILLNESS PROTECTION

Critical Illness – explained
The intention of Critical Illness protection is to provide you with capital if you are diagnosed as having a specific illness, for example, heart attacks, stroke or cancer.

Why has it been introduced?
Because with increasing medical knowledge, you are more likely to survive serious ill health, however may find that you have to seriously re-think your lifestyle. This can mean reducing working hours or a career change, which could affect your income.

Payment of a lump sum on diagnosis of a critical illness could provide you with the money to repay your mortgage, alter your home or extra income for the future, therefore releasing you from financial worries. You receive the money tax free on diagnosis of the specific illness. Cover can be arranged under different types of policies which are explained below:

	Whole of Life This is a plan which pays the sum assured on the diagnosis of the critical illness, whenever it occurs, or death. Furthermore, the policies are designed so that after they have been in force for 10 years, they may have cash values and all or part of the proceeds can be taken without a personal tax liability if you no longer need the cover.
	Term Assurance Provides a high level of cover in relation to the premium because there is no investment content in the policy and therefore no surrender value.
	Critical Illness Only This means that no payment is made on death. This type of policy is ideal if you already have life assurance cover in force or have no dependants and the monthly premiums are lower than the other policies described, which include a death benefit.