Critical illness cover (CIC) is one of the most misunderstood and often overlooked types of insurance. Despite being a safety net for individuals facing life-threatening conditions, myths and misconceptions are common, causing many people to underestimate its value or dismiss it altogether. At Cherry Godfrey, we’re committed to helping our clients make informed decisions about their financial security, especially when it comes to insurance. Today, we’re going to debunk some of the most common myths surrounding critical illness cover and explain why it’s a vital part of any comprehensive financial plan.
Myth 1: "I Don’t Need Critical Illness Cover Because I’m Healthy"
It’s natural to feel invincible when you’re in good health, but the reality is that illness can strike at any time, and the risk of developing a critical illness increases as you age.
The key to critical illness cover is that it protects you against the costs that can arise from life-changing conditions that could impact your ability to work and live your normal life.
Remember that a critical illness can be financially draining, especially if you have to cover the costs of treatment or make changes to your home to make it more accessible. Critical illness cover fills that gap, giving you peace of mind that you are covered.
Myth 2: "Critical Illness Cover is Too Expensive"
Many people shy away from purchasing critical illness cover because they think it’s unaffordable. However, the cost of critical illness insurance depends on several factors, including your age, health, lifestyle and the level of cover you choose. In many cases, critical illness cover is more affordable than people realise, especially when compared to the potential financial strain of not having it in place.
Cherry Godfrey's critical illness cover can be tailored to suit your needs, whether you're looking for comprehensive protection or a more affordable option. Our advisers are on hand to walk you through the various levels of cover available, ensuring you find the right plan for your circumstances. Additionally, critical illness cover can be combined with a life insurance policy for added peace of mind.
Myth 3: "If I Have Life Insurance, I Don’t Need Critical Illness Cover"
Life insurance and critical illness cover serve different purposes. Life insurance pays out a lump sum to your beneficiaries when you die, helping your family cope financially after your passing. Critical illness cover, on the other hand, provides a lump sum to you if you're diagnosed with a critical illness while you're still alive.
Many people mistakenly assume that their life insurance will help them if they become critically ill, but this isn’t the case. Life insurance only comes into play after death, which may leave you struggling with the financial implications of an illness in the meantime. Critical illness cover can be a huge help during a difficult recovery period, helping to pay for everyday living costs and the support you might need to manage your health.
Myth 4: "Critical Illness Cover Will Only Pay Out if I’m Dying"
While some policies may have specific exclusions or conditions, many modern critical illness policies will pay out if you're diagnosed with a serious illness, regardless of whether you’re expected to die from it. The key is to read your policy carefully to understand exactly what conditions are covered and under what circumstances.
Critical illness cover is designed to help you through your recovery, not just when you're near the end of your life. For instance, if you’re diagnosed with a serious condition like cancer, the pay-out could help cover the adjustments to your home, or even helping with your daily living expenses while you're unable to work.
Myth 5: "Critical Illness Cover Will Only Pay Out for the Most Severe Conditions"
This myth is based on a misunderstanding of what qualifies as a critical illness. In fact, many policies cover illnesses that can require extensive treatment and long-term recovery, such as:
- Early-stage Cancer
- Loss of mobility
- Multiple Sclerosis and other neurological conditions
- Severe Rheumatoid Arthritis
- Severe injuries (such a burns, loss of limbs and other life-altering injuries)
- Blindness or deafness
These illnesses can significantly disrupt your life and your ability to work. Critical illness cover ensures that you're financially supported during the recovery process, regardless of the severity of the condition. You don’t have to be in a life-or-death situation for your policy to provide valuable protection.
Myth 6: "I Can Just Rely on State Benefits If I Get Seriously Ill"
While state benefits do exist for individuals who are too ill to work, they are generally not enough to cover all your living expenses, especially if you need to spend lots of money on treatments, changes at home or in other areas of your life. The amount of money you can receive from state benefits is relatively small, and it may not be sufficient to cover all of the costs that can be incurred from a critical illness.
It's designed to ensure that you’re not left in financial hardship during a time when you should be focused on recovery, not worrying about money.
Myth 7: "Critical Illness Cover Only Pays Out Once"
Many people assume that once they’ve made a claim, they can no longer benefit from critical illness cover. However, this isn’t the case with many modern policies. Some insurers offer policies that allow for multiple claims. If you survive one serious illness and later develop another, your policy may provide additional pay outs, depending on the terms and conditions of the coverage.
Always check the details of the policy, as coverage can vary between providers. But don’t assume that you’re limited to a single pay out - many insurers offer more flexible policies to meet your ongoing needs.
Reality: Critical Illness Cover Is a Wise Investment for Your Future
Critical illness cover provides crucial financial protection during some of life’s most challenging times. By debunking these common myths, we hope to help you better understand how this type of insurance works and why it’s a valuable part of your overall financial security. No one wants to think about the possibility of becoming seriously ill but planning for the unexpected is an essential part of protecting your future.
At Cherry Godfrey, we’re here to help you navigate the options available and find the right cover for your circumstances. If you have any questions or would like to discuss your insurance needs, please don’t hesitate to get in touch with our friendly team.
