Critical Illness Insurance cover for Contractors
Read about this vital protection and fill in the Critical Illness Cover Finder form below to find out more and receive personalised recommendations.
Contractors can be subject to various work related pressure that can take a serious toll on their health. Lack of mobility during the working day, rushed breaktimes and the stress associated with responsibilities and invariably tight deadlines can all have an impact on a previously healthy individual.
Such lifestyle related illness could have a great impact on an independent professionals financial health. Critical Illness cover is designed to pay out a lump sum on diagnosis of a range serious illnesses. This cover can be of far more relevance to contractors than life insurance which pays out only on death.
Many illnesses would have been killers 10 years ago but are now debilitating and controllable given advances in medicine. However these same illnesses can leave you in a reduced state of health. For a regular monthly premium a contractor can arrange for a lump sum to be provided on diagnosis of such an illness. The funds can be spent as you chose for example to settle a mortgage, pay for a period of convalescence or even pay for changes to the home.
This cover goes hand in hand with Income Protection which pays a monthly income in event of illness but which would stop once you were assessed as having made a satisfactory return to health and work.
The lump sum pay out from a critical illness policy would be yours to keep, regardless of a return to some measure of good health and could maybe allow for some changes to your work life moving forward.
With life cover, cost, the approach of the underwriter and the financial strength of the company (i.e. will the provider still be around to meet its obligation to you in 10 years time) are all issues to consider. However when advising contractors on critical illness cover we ensure that illustrations are competitive but equally important factors must be taken into consideration.
Important considerations when looking at critical illness cover
Medical definitions of what is covered are very important - these must be comprehensive enough to be of practical use to you in the event of a claim.
The provider must also have a good track record of paying claims.
Premiums must also remain affordable throughout so that protection can also be maintained as you get older.
You can cover yourself for a fixed level amount over a set term (i.e. until retirement/ your children grow up /a debt is repaid - this cover is called Level Term)
You also have the option of a decreasing amount of cover (decreasing Term Assurance, DTA) that will reduce in line with a reduced liability - i.e. a repayment mortgage.
Ordinarily cover will pay a lump sum but if you have reservations about this you can arrange for a monthly payment to be made over a set period of time. This scheme is known as a Family Income Benefit (FIB).
We are happy to point out that we do not charge you a fee for our specialist protection advice but will receive commission from the provider. This commission is fully disclosed only any illustration we provide.
Please feel free to fill in the critical illness cover finder above and a specialist adviser will be in contact to discuss your specific needs and circumstances.
Please feel free to fill in the critical illness cover finder below and we will get back to you with a recommendation tailored to your needs.
ContractorUK are not authorised to offer regulated mortgage advice. ContractorUK are introducers to CMME.
Your home may be repossessed if you do not keep up repayments on your mortgage.
CMME is a trading name of CMME Mortgages and Protection Limited. Authorised and regulated by the Financial Conduct Authority (FCA reg. 414798). Registered in England No. 04886692. Registered Office: Albany House, 5 Omega Park, Alton, Hampshire, GU34 2QE. Please be aware that Commercial Mortgages, Overseas Mortgages and some Buy To Let Mortgages are not regulated by the Financial Conduct Authority. Calls may be recorded for training and security purposes and to improve the quality of our services.