Have you ever wondered what would happen if you became too ill to work? Who would take care of your bills and expenses, or support your family in tough times?

If someone falls severely ill, they may need to go to doctor visits, hospital visits, and take time off for treatments. This could compromise their income and without steady income, it can be difficult for families to make ends meet. Illness can quickly deplete savings and leave future plans uncertain.

Life insurance provides valuable protection for your family if something were to happen to you. However, can it be used to cover a serious illness? Learn more about your options in this article...

Can life insurance be used to cover illness?

Life insurance is a type of policy that provides financial protection for your family in the event of your death. It does not cover accidents, illness, or other medical conditions that you happen to survive from. However, some life insurance policies may offer a terminal illness benefit. This pays out if a person has a life expectancy of less than 12 months.

For protection against illnesses, there are other types of personal insurance available, such as income protection insurance and critical illness cover. These products can help with financial stability if you become unable to work due to illness or injury.

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. For term life insurance, if you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid. If you are experiencing financial difficulty and are struggling to pay your premiums, please contact your insurer to discuss your options.

What is income protection?

Income protection provides financial support in the event that an individual is unable to work due to illness or injury. It can help cover lost wages, medical bills, and other expenses while you are unable to work.

Full term income protection typically pays out a regular benefit until you’re able to return to work or until the policy expires.

Limited term income protection, or ‘budget’ income protection pays out for a specific amount of time, usually 1, 2 or 5 years in the event of a valid claim.

The amount of cover and length of the policy will depend on the individual's needs and budget. Generally speaking, most policies will limit the policy benefit amount to 65% of your gross annual income.

With income protection, you do not have to meet a condition on a pre-defined list, instead you can make a claim if a doctor signs you off work. Common reasons for claiming include:

  • Musculoskeletal conditions

  • COVID-19

  • Hip/Knee

  • Mental Health

  • Bereavement

Talk to an Income Protection expert today...

What is critical illness cover?

Critical illness cover is designed to provide you and your family with financial security if you’re diagnosed with a critical illness. It can support you and your family with medical expenses, mortgage payments, utility bills, childcare or any other commitments whilst you're unable to work.

A tax-free lump sum is usually paid out if you are diagnosed with an illness listed in the policy. Such conditions typically include:

  • Cancer

  • Heart attack

  • Stroke

  • Multiple Sclerosis

  • Kidney failure

  • Major organ transplants

Talk to a Critical Illness expert today...

How much cover do I need?

When deciding how much cover you need, it is important to consider your current financial situation and any potential future expenses. You should also take into account any financial commitments you have, such as dependants, a mortgage and other debts.

It is also important to consider any potential medical expenses you may incur if you become seriously ill or injured. This could include the cost of home care, private treatment, and other long-term care costs.

Ultimately, the amount of cover you need will depend on your individual circumstances and financial goals. It’s also worth speaking with a qualified financial advisor who can help you determine the right level of cover for you.

Which policy is right for me?

Generally speaking,choosing the right life insurance policy should reflect your  individual needs and budget. If you are looking for protection against illness, then income protection or critical illness cover may be the best option.

If you're looking to protect your family in the event of your death, then life insurance will be your preferred route. However, it may be possible to  also add critical illness to an existing life insurance policy. This way, you can get the financial protection you need without having to take out a separate policy. To do this, you will need to contact your insurer to see if it is possible.

Remember: No matter which type of policy you choose, it is important to read the terms and conditions carefully before signing up. This will ensure that you are getting the right coverage for your needs.

Get cover through Cavendish Online

To apply for life cover, critical illness cover, or income protection, you can speak with one of our experienced advisers over the phone. There are no fees associated with speaking to the team and receiving your quote. To get started, simply contact us, and one of our advisers will be happy to help.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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