Critical Illness Cover (disability insurance or long-term care insurance) can provide you with a lump sum in the case of a sustained or debilitating illness. This lump sum help to support you financially allowing you to keep up with financial commitments such as mortgage payments, school fees or new living costs that result from your illness such as home help.
Not all policies cover every condition so before going for the cheapest option you should not only look at the benefits they offer but also look at the conditions they cover and decide if the risk of contracting any illnesses not covered by the policy is acceptable. Some policies will also cover your children should they suffer from an illness or accident that requires ongoing medical care.
Fixed Premium policies are becoming increasingly rare but do as you’d expect and fix the premiums you have to pay for a longer period of time than normal policies. While this is likely to cost you more in the short term it can very quickly pay dividends as non-fixed policies can increase exponentially over time.
A small but important detail in your policy is that it covers you if you are unable to continue your profession. If it only covers you if you are unable to continue any profession then you may be forced to work in a field that you are not experienced or interested in and that pays much less than your current job.
Many mortgages require you to have some form of critical illness cover to ensure them that you will be able to keep up with your payments.