Critical Illness Cover
Protecting what matters most
For when the unexpected happens
Life is full of unexpected turns. While we all plan for a bright future, a sudden diagnosis of a serious illness can bring not only physical and emotional stress but also significant financial strain. Serious Illness Cover (often also referred to as Specified Illness Cover or Critical Illness Insurance) is designed to provide you with a tax-free lump sum payment if you are diagnosed with a specific serious illness covered by your policy.
At JC Mortgage Brokers, we believe that true financial security isn’t just about finding the right mortgage, it’s about ensuring you can keep your home and support your family even when the unthinkable happens.
Serious illness insurance – Go To:
What is critical illness cover?
Also known as Serious Illness Insurance is a type of insurance policy that pays out a one-time, tax-free cash lump sum if you are diagnosed with one of the specific illnesses or disabilities listed in your policy. Unlike health insurance, which pays for medical treatments, or income protection, which provides a monthly salary, critical illness cover gives you a large sum of money to use however you see fit.
| It Happens Younger Than You Think! Serious illness is not just an issue for the elderly. The average age of a person claiming on a specified illness policy with major insurers like Irish Life and Zurich is just 53 to 54 years old, prime working years. |
Key Strategic Benefits:
If you become seriously ill, and covered with your insurance policy, to try and alleviate your personal circumstances your critical illness cover payout could be used for, but not restricted to any of the following:
- Pay Off Your Mortgage: Ensure your home is secure if you can no longer work.
- Cover Living Expenses: Maintain your standard of living while you focus on recovery.
- Medical Costs: Pay for specialised treatments or adaptations to your home not covered by standard health insurance.
| Tax-Free Payout: In Ireland, the lump sum you receive is generally free from income tax. |
What Illnesses are Covered?
Modern policies in Ireland typically cover between 50 and 70+ serious illnesses. While every insurer has their own specific list, the most common claims include:
- Cancer (of specified severity)
- Heart Attack
- Stroke with permanent symptoms
- Multiple Sclerosis
- Kidney Failure
- Major Organ Transplant
- Permanent Total Disability (PTD): This covers you if an illness or accident leaves you permanently unable to work in your own occupation or any occupation, depending on your specific policy
Expert Broker Tip: Not all illnesses are treated equally. Some policies offer “Partial Payments” for less severe conditions (like certain early-stage cancers), paying out a smaller amount (e.g., €15,000 or 50% of cover) without ending your main policy.
| The "Income Shock" is Real Cancer patients in Ireland face an average drop in income of €1,527 per month (approx. €18,323 per year) due to their inability to work and associated costs. A critical illness payout bridges this gap when regular income stops. |
Serious Illness Cover vs. Income Protection
Many people confuse these two types of insurance. While Critical Illness Cover pays a lump sum, Income Protection Insurance provides a monthly taxable income. For a full breakdown of consumer protections regarding these policies, you can visit the CCPC Serious Illness Guide.
| Feature | Serious Illness Cover | Income Protecction |
|---|---|---|
| Payout Type: | One-time tax-free lump sum | Regular monthly taxable income |
| Trigger: | Diagnosis of a specified illness | Inability to work due to any illness or injury |
| Tax Relief: | No relief on premiums | Full tax relief on premiums (up to 40%) |
| Common Use: | Paying off debt (mortgage) or medical bills | Replacing salary for daily living costs long-term |
Expert Broker Tip: In Ireland, the lump sum from a Specified Illness policy is generally tax-free. However, unlike Income Protection, you do not receive tax relief on the premiums.
Automatic Benefits: Protecting the Whole Family
When you take out a policy through JC Mortgages, we look for plans that offer the best “extra” features at no additional cost:
- Children’s Cover: Most policies automatically include a level of cover for your children (often 50% of your benefit up to a maximum of €25,000) for the same specified illnesses.
- Conversion Option: This allows you to extend your cover at the end of the term without having to provide new evidence of your health.
- Hospital Cash: Some policies pay a daily amount for every day you spend in the hospital due to an illness or accident.
How Much Does it Cost?
The cost of your premium depends on several key factors:
- Age: Cover becomes significantly more expensive as you get older.
- Health & Medical History: Pre-existing conditions may lead to exclusions or higher premiums.
- Smoking Status: Smokers pay significantly more than non-smokers due to the increased risk of illness.
Amount & Term of Cover: Naturally, higher payouts and longer policy terms increase the monthly cost.
Serious illness cover- FAQs
No. While Mortgage Protection Insurance is legally required by lenders, Critical Illness Cover is generally optional. However, adding it to your mortgage protection policy ensures your loan is cleared if you survive a serious illness but cannot return to work.
Standard policies usually end after one full payout. However, some "Multi-Claim" policies exist that allow for multiple claims if you are diagnosed with a different illness later in life.
To make a claim, you must typically survive for a set period (usually 10 to 14 days) after your diagnosis.
Accelerated Cover is added to a life insurance policy; a claim for serious illness reduces the remaining life cover amount. Standalone Cover is a separate policy that pays out independently of any other life insurance you may have.
Secure your critical illness cover with JC Mortgages
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