While insuring our homes, telephones and even our lives, we tend to forget about protection that will support your finances when you can’t work because of illness. This is how critical illness insurance works – this is a type of protection that, if illness diagnosed, will help you receive a tax-free lump-sum to cover the costs of treatment or replace income that you lose as a result of being unable to work.

Critical illness insurance can take various forms, e.g. insurance, whose final amount increases with inflation, protection that is associated with your mortgage and decreases as mortgage debt decreases or critical illness insurance combined with life protection.

Remember: during the application the insurer will ask about your family’s medical history, amount of cigarettes smoked and alcohol consumed as well as other personal data. At this stage you must provide true information – otherwise your insurer may reject any claim you make.