Serious Illness Cover is a benefit which pays out a tax-free lump sum if you are diagnosed with one of the specific illnesses or disabilities that your policy covers. The main aim of the insurance is to replace a loss of income due to illness.

CLAIMS BY COUNTY STATS 2011  

HOSPITAL CASH & PERSONAL CLAIM STATS 2011 

TERMINAL ILLNESS STATS 2011

Critical illness can be added to a life policy on an accelerated basis, so the payment of a claim under the critical illness cover, reduces the balance of the life cover remaining on the policy. The other option is to have the critical illness as stand alone, in this way the critical illness cover is separate from the life cover, or may even stand alone without any life cover.

Example: Accelerated critical illness-
LIfe of Mr. Billy Bob is assured for €250,000 with €100,000 accelerated critical illness cover, under a 35 year level term policy commencing at age 30. Billy is diagnosed at age 55 with cancer, which is one of the critical illnesses which is covered under the policy. The life company pays over to Billy €100,000. There is still €150,000 life cover on Billy's life (€250,000 - €100,000).

Billy recovers from the illness, however he dies at age 60. The life company pays out the remaining life cover benefit of €150,000 to Billy's estate.

Example: Stand Alone critical illness -
Life of Mr. Billy Bob is assured for €250,000 with €100,000 stand alone critical illness cover, under a 35 year level term policy commencing at age 30. Billy is diagnosed at age 55 with cancer, which is one of the critical illnesses which is covered under the policy. The life company pays over to Billy €100,000. There is still €250,000 life cover on Billy's life, as the critical illness cover was stand alone or separate from the critical illness cover.

Billy recovers from the illness, however he dies at age 60. The life company pays out the life cover benefit of €250,000 to Billy's estate.