Critical Illness Insurance cover for Freelancers

4 min
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Why do freelancers need critical illness insurance? Freelancers need critical illness cover because it is designed to protect them should the worst happen. The insurance providers will pay out a lump sum on the diagnosis of a range of serious illnesses, unlike life insurance which pays out only on death. Therefore, it's essential for the self-employed to make sure they are covered.

A cash lump sum helps freelancers ease their financial worries whilst undergoing treatment and recuperation from a serious illness. When you are faced with serious health conditions/challenges the last thing you need is the stress of unpaid bills. This cover is there for you to have peace of mind and be assured that you and your family are financially supported during difficult times.

What are the key features of critical illness insurance for freelancers?

The following are of the key features which critical insurance cover will have.

  • A lump sum of money (tax-free) paid straight into your bank account at a time when you need it most.

  • Your pay can be used to cover some of the biggest financial strain such as a mortgage. Or it can even be designed to provide you with support to cover any unexpected costs associated with a debilitating or life-changing illness.

  • The insurance will usually cover from 40-99 conditions.

  • Our partners at Freelancer Financials can help you navigate the process of finding the right cover/policy suit your individual circumstances

How does critical illness insurance for freelancers work?

Whether you are a freelancer or self-employed, there may be a time when you are subjected to various work-related pressure that can take a serious toll on your health. From the lack of mobility during the working house, lack of breaks and overall work-related stress can have a detrimental effect on your health.

Lifestyle-related illness could have a great impact on a freelancer's health, and critical illness insurance lump-sum payouts are designed to help reduce this impact.

Many illnesses would have been a death sentence 10-15 years ago but thanks to medical advances and a greater understanding of our health, these illnesses are often treatable and sometimes even curable. However, if you are having to deal with financial worries and stress, then the recovery process can be even longer. It's important to be prepared for the worst and feel assured that you are protected.

Illnesses can leave you in a reduced state of health. For a regular monthly premium, a freelancer can arrange for a lump sum to be provided on the diagnosis of such an illness. The funds can be spent as you choose for example to settle a mortgage, pay for a period of convalescence or even pay for alterations needed to allow you to stay in your 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.

The lump-sum payout from a critical illness policy would be yours to keep, regardless of whether you recover from the condition. This money could even allow for some changes to your work-life moving forward and can really be life-changing.

With your life insurance, cost, the approach of the underwriter and the financial strength of the company are all issues to consider. However, when advising on critical illness cover Freelancer Financials ensure that illustrations are not only competitive but that the cover is of sufficient quality.

Important considerations when looking at critical illness cover

You need to make sure that you are choosing the right cover and the provider for you. Here are some of the most important factors you need to consider before taking out your critical illness insurance cover:

  • The fine print - 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. No-one wants to be told that they aren’t sick enough to make a claim.

  • Look over the details - Check how much cover you need, how many conditions are covered in your policy and how long the term of policy will last.

  • Do your research - Make sure that the providerhasa good track record of paying claims and of the claims that aren’t paid, justifiable reasons are given.

  • Plan for the future – make sure that the premiums must also remain affordable throughout so that protection can 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/debt is repaid etc. or you have the option of a reducing amount of cover that will reduce in line with a reduced liability - i.e. a repayment mortgage.

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