Critical Illness Cover
CIC
What is it?
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Critical Illness Cover (CIC) pays out a lump sum upon diagnosis and survival for a specified term (often 28 days) of a critical illness. The scope of what conditions are covered may vary from Provider to Provider, however commonly covered conditions include:
- Cancer
- Heart Attack with evidence of coronary heart disease
- Loss of hearing, speech or sight
- Loss of limbs
- Major Organ Transplant
- Multiple Sclerosis
- Permanent Total Disability
There are other conditions that may be covered and reference should always be made to the Provider literature for full details of what is and is not covered.
Who is it for?
This type of insurance is appropriate where a lump sum is required by the insured to ease the financial burden associated with contracting a serious health condition as described above. The lump sum could be used to:
- Repay a debt such as a mortgage
- Provide a lump sum to pay for amendments to a property
- Provide some additional financial security
How does it work?
The premium options are as follows:
- Guaranteed
Provides fixed benefit for a fixed premium throughout the term of the cover. - Reviewable Cover
Whereby the premiums could increase due to bad claims experience or, if unit-linked, poor investment performance. The length of cover will be determined by the policy and will either be for a specified term or whole of life. Benefit is paid upon survival for a specified term from the diagnosis of the critical illness or condition. Generally the benefit will be paid as a lump sum.
