Critical illness insurance in UK is a new type of insurance that covers the cost of critical care services. It was introduced in the UK in 2018 and is expected to become popular because of its low cost and high coverage.
The policyholder pays a monthly premium for this insurance, which is usually cheaper than private health cover. If they are diagnosed with a critical illness, they can choose to pay out-of-pocket or claim from their policy.
Who can avail this type of insurance?
The idea of health insurance has been around for a long time. In the UK, the idea of insurance for critical illnesses is relatively new. This type of insurance is meant to provide financial protection in case you become critically ill and need treatment that cannot be afforded by your own resources.
Critical illness policies are popular with people who are concerned about their financial security and health care. The idea is to provide a form of protection against unexpected costs that may arise due to a serious illness or injury.
What all is covered under this policy?
The policy can cover all sorts of treatment that may be needed, such as hospital stays, medication, surgery and rehabilitation treatments like physiotherapy and speech therapy. They can also cover some services like funeral costs, as well as help with childcare costs if you need them while you’re recovering from your condition.
This type of insurance provides a financial safety net for people who have been diagnosed with an incurable, life-threatening condition.
The role of FCA in introduction of critical illness insurance
UK critical illness insurance was introduced in 2015 following recommendations made by the Financial Conduct Authority (FCA) in 2014. It was introduced with a view to providing financial protection for people who are diagnosed with life-threatening illnesses or injuries and who need to undergo treatment that is not covered by their existing health insurance policies.
The FCA recommended that all individuals should have access to critical illness insurance as it would provide financial protection for those who might be unable to work for long periods due to their condition, without having to pay high premiums or take out expensive mortgage policies.
The introduction of UK critical illness insurance has been met with criticism from some groups as they say it will leave many people vulnerable if they are diagnosed with a terminal illness or injury before they have purchased the policy.
Types of critical illness policies
Policies are usually taken out when people are financially well off, as they can afford the premiums.
There are two types of critical illness policies: life-only policies and whole-of-life policies. Life-only policies pay out when an individual dies, while whole-of life policies pay out when an individual dies or if they become terminally ill.
The policyholder can choose how much money to take out on the policy, which depends on their age and health status at the time of purchase. The maximum amount that can be taken out on a whole-of-life policy is £300,000 per person, but this amount varies depending on which company you buy it from.
