A financial advisor has warned that many individuals are risking subjecting their family to crippling financial commitments by not having the correct insurance cover in place.
Simon Howard, consultant at Ludlow Wealth Management Group, explains that critical illness cover is a protection policy which pays out a tax-free lump sum in the event of a policy holder suffering a life-threatening illness.
However, many people confuse this with life cover or income protection. Simon urged families to get expert advice.
He said: “These policies have been subject to criticism in the past due to their expensive nature, especially compared to life assurance, but what people don’t appreciate is the overwhelming number of individuals who suffer a critical illness pre-retirement. The average age for a critical illness claim from a leading provider in the UK is just 48.”