Contractor critical illness specialists
What is critical illness cover?
Critical Illness cover is a type of insurance that pays out a tax-free lump sum if you’re diagnosed with, or undergo surgery for, a critical illness that meets policy definitions during the policy term.
It’s designed to help support you and your family financially while you deal with your diagnosis – so you can focus on your recovery without worrying about how your bills will be paid.
As critical illness cover is designed to support extra costs if you fall ill, it may be worth taking out a policy if these three things resonate with your circumstances.
1
Your family depend heavily on your income to support them
2
You don’t have enough savings to live on if you were to become seriously ill or disabled
3
Your job won’t cover you for a long period off work due to sickness (employee benefits package)
Explore other protection solutions
Finding the best insurance policies for contractors
Cleerly is dedicated to finding the right insurance plans tailored to contractors and their unique financial circumstances. Is your home and its contents covered in the event of loss or damage to your property?
Contractor critical illness cover FAQs
Policies may differ depending on the insurer, but illnesses that are usually covered are serious conditions such as cancer, loss of arms or legs, heart disease, stroke, multiple sclerosis or heart attacks. Basic policies typically cover 30+ serious conditions, and more comprehensive ones 60+ conditions.
Critical illness cover can provide contractors with a financial cushion should they be diagnosed with a severe illness that prevents them from working. Unlike life insurance, which provides a lump sum to beneficiaries after the death of the individual insured, critical illness cover pays out a lump sum upon diagnosis of a serious illness. This money can help contractors cover expenses such as medical bills, mortgage payments or any other outgoings they may have during the recovery period.
Critical illness cover provides peace of mind to contractors and their families, and is especially important for professionals who don't have access to the usual employee benefits given to permanently employed individuals, such as sick pay or income protection.
If you are paying for critical illness premiums yourself, this would not be classed as tax-deductible and would need to be paid for out of your post-tax income. However, any claims resulting in a lump sum payout would be tax-free.
As a contractor, finding the right critical illness cover can feel like a bit of a minefield, especially if you have conditions that are not straightforward. When exploring options, it's worth taking the following into consideration:
- How much cover you will need if you become ill (to pay for mortgage payments, family outgoings, bills, etc.).
- What sort of cover you require, e.g. a fixed amount over a set term or an adjustable amount that reduces over time.
- Which illnesses are covered by the policy - no two policies are the same.
- Are there any exclusions within the policy - some critical illnesses might only be covered at a certain stage or level of severity.
- Ensure the provider is reputable, with a good track record of paying out claims.
- Can you afford the monthly premiums. Remember that the cost can vary depending on your age, pre-existing health, whether you're a smoker, etc.
Speak to Cleerly today on 02394 212912 and one of our specialist critical illness and contractor mortgage consultants will be happy to discuss your options further.
Pre-existing conditions won't necessarily mean you can't get cover, but the likelihood is it will push your premium up. Each insurer will have their own guidance on this, so being declined by one provider does not mean you will be rejected by them all. Remember that honesty is always the best policy - any undisclosed conditions could severely impact future claims.
Finding the best critical illness cover as a contractor isn't always straightforward. No two insurance providers are the same and premiums are set depending on a myriad of different factors.
This is where Cleerly's protection experts can help. With over 15 years in the business, we specialise in helping our clients secure the best critical illness cover tailored to their unique circumstances, acting as a point of communication between contractor and provider. Contact Cleerly today and find out how we can help find the right cover for you.