Critical Illness Cover (CIC) / Serious Illness Insurance
Critical Illness Cover (CIC) or Serious Illness Insurance is a long-term policy that pays you a tax-free lump sum if you are diagnosed with one of a specific list of serious illnesses or disabilities, such as Heart Attack, Stroke or Kidney failure.
It is important to realise that Critical Illness Cover is not designed to replace your income if you are unable to work because of a serious illness. The policy only pays out if your illness is covered by the policy and the payment is a single lump sum.
You should be cautious when taking out a serious illness policy and know what illnesses are included and excluded. In certain instances your medical condition has to be extremely serious for the policy to pay out. Be sure to take professional advice when considering such a policy. If you would like to be paid an income, if you are unable to work due to illness, you should consider Income Protection/Permanent Health Insurance (PHI).