Critical Illness Insurance – cover for the living

Risk Insurance

8 March 2022

When most people start looking at life insurance, they see it as cover that will provide for their loved ones once they’re no longer around. But it’s not just black and white. Critical Illness cover is one type of personal insurance that can help protect you while you’re still alive.

In 2019, it is estimated that 144,713 new cases of cancer were diagnosed in Australia. That is equivalent to approximately one new case every four minutes.

These numbers are hard to ignore, which is why it’s important to consider that life insurance isn’t only relevant when you’re no longer alive. Let’s take a closer look at Critical Illness insurance - cover for the living.

What is Critical Illness cover?

If you are diagnosed with a serious illness, Critical Illness cover can pay a lump sum which can be used to keep your household running or cover medical expenses, so you can focus on your recovery.

Which health conditions does Critical Illness cover include?

Critical Illness insurance covers a wide range of health problems of specific severities, including cancer, heart attacks, strokes, paralysis and gynaecological conditions. Each policy can vary, so make sure you compare the different products available as they may cover different conditions and have different measures for severity of conditions. If you would like assistance, please contact our risk insurance advisers and we’ll be happy to help.

Who can benefit from Critical Illness cover?

If you’re financially responsible for yourself or others and you don’t have emergency savings to cover unexpected medical costs, it may be worth considering Critical Illness cover. The impact of a critical illness often goes beyond the individual who is unwell. For instance, a family member who suffers a heart attack. They will likely need to take time off work to recover, and their partner may also sacrifice income by taking time off work to provide care. A huge change in circumstances which could quickly leave them financially compromised.

How can a Critical Illness insurance payout be used?

Critical Illness insurance is paid out in a lump sum. Unlike health insurance or Medicare, you get to decide how to spend your payout. People often use the funds to cover the ongoing costs of suffering from a critical illness – as well as the things they need to get them back on their feet. For example, you can pay for therapy, rehabilitation or any home modifications you require after your illness. You could also use the lump sum to replace lost income and keep up with regular payments like mortgage instalments or bills.

Critical Illness cover can be included in insurance packages such as Life Insurance and can be tailored to suit your personal situation. Get in touch with our Risk Insurance team to find out more about your options, we’ll be happy to help.

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it you should consider its appropriateness for you, having regard to those factors.

Author: Steven Carfora

I have worked as an Insurance Specialist for almost 15 years, and worked in the finance industry for over 25. I have worked at National Australia bank, Macquarie Bank, Aviva (Now MLC) and AMP before starting at WHK (Now Findex) in 2007. I have successfully passed the FASEA Ethics Standard Exam and am currently studying a Masters of Financial Planning. I already have a Masters Degree of Business from University of Newcastle, an Advanced Diploma in Financial Planning and a Life Risk Specialist accreditation from the FPA.