Personal protection: critical illness explained

Many of us would think we will never be diagnosed with a critical illness, but it could happen to anyone at any time. How would you and your family cope financially if you became ill?

Whether it's paying for treatment or helping to cover your salary while you get better, a critical illness policy could make an enormous difference if you're diagnosed with a life changing illness. Protection insurers provide cover for a significant list of conditions, which could include cancer, heart attacks and strokes

There are different types of cover; level cover and decreasing cover:

• With level cover, what you pay each month stays the same for the whole term of the policy, and so does the cover amount;
• If you prefer your level-cover amount to rise with the cost of living, you can opt to protect it against the effects of inflation. However, this means that what you pay will increase over time also
• Decreasing cover works like a loan repayment, with a fixed interest rate. So, the value of your cover decreases gradually, but the amount you pay stays the same

Other key criteria:

• A critical illness policy can also include children's cover, so the whole family can stay protected
• Cover can usually last between 5 and 50 years, or typically up until your 75th birthday
• When it comes to how much cover you'll need, everyone's different - Think about everyday costs like the mortgage, bills and childcare. The amount can be tailored to your requirements, so you're able to live life as normally as possible

Even a small amount of critical illness cover could allow you to take the time you need to recover, make necessary adjustments to your home, or take a well-deserved holiday. Speaking with an adviser can help you navigate the solutions available, and ensure you and your home are suitably protected