Serious Illness Cover in Ireland
Financial Protection When Life Is Most Challenging
What is Serious Illness Cover?
Serious illness cover (also known as specified illness or critical illness cover) is a type of insurance policy that provides financial protection if you are diagnosed with a specified life-threatening illness. It pays out a tax-free lump sum that can be used however you need during a difficult time.
When you take out serious illness cover, you choose the amount of protection you need and the term of the policy. If you are diagnosed with one of the illnesses specifically listed in your policy, you can make a claim for a lump sum payment, provided medical proof of the diagnosis is supplied.
Quality Care
Access the medical treatment and care you need without financial worry during recovery from serious illness.
Financial Security
Pay off your mortgage, clear debts, and maintain your family's standard of living with a tax-free lump sum.
Affordable Protection
Serious illness cover is often more affordable than expected, with costs comparable to other monthly expenses.
Peace of Mind Anytime
Focus on your recovery knowing your financial obligations are covered and your family is protected.
1. Standalone Serious Illness Cover
Standalone (or independent) serious illness cover is a completely separate policy from any life insurance you might have. This type of cover is designed for clients who have a serious illness cover need in addition to their life cover needs.
Key Features:
- The full chosen amount is paid if you make a successful claim
- The policy then ends after the claim is paid
- Usually requires a survival period of at least 14 days from diagnosis for the benefit to be paid
- Provides a nominal death benefit (typically 5% of the sum assured) if death occurs before the survival period
- Can be used to pay for medical expenses, home adaptations, replace lost income, or any other purpose
Mary effects a €100,000 standalone serious illness policy. The policy has a survival requirement of 14 days. Some years later she is diagnosed with a serious form of cancer covered by the policy. As she survives for at least 14 days from diagnosis, the €100,000 is payable. Once the claim is paid, the policy is cancelled.
Best Suited For:
Individuals who want to maintain their full life insurance cover even after making a serious illness claim, or those who need additional serious illness protection beyond what's included with their life cover.
2. Accelerated Serious Illness Cover
Accelerated serious illness cover may be available as an optional or rider benefit on some Term Assurance and Whole of Life policies. With this option, the sum assured is payable on the first to happen: death of the life assured OR diagnosis of a covered serious illness.
Key Features:
- Combined with life insurance or mortgage protection in a single policy
- If you claim for serious illness, the payment reduces your life cover by the same amount
- The benefit is paid as an "acceleration" or advance payment of the life cover
- Can only be claimed once - either on death or on diagnosis of serious illness
- More affordable than having separate standalone policies
- Often used with mortgage protection to clear loans if serious illness strikes
Mike takes out a policy for €100,000 life assurance cover with accelerated serious illness cover. Some years later Mike suffers a serious heart attack and claims the €100,000 serious illness cover. The claim is accepted and the €100,000 is paid out to Mike. The policy is then cancelled with no further benefit.
Laura takes out a policy for €250,000 life cover and €100,000 accelerated serious illness cover. Some years later Laura suffers a heart attack and successfully claims the €100,000 serious illness cover. The €100,000 is paid out to Laura. Her life cover is then reduced by this amount to €150,000 and she can continue the policy with €150,000 life cover.
Best Suited For:
Those seeking the most cost-effective option who primarily need life cover but want added serious illness protection, or borrowers wanting to ensure their mortgage can be cleared in case of serious illness.
3. Double Cover (Additional Cover)
Double cover is a policy which provides life assurance cover AND separate standalone serious illness cover within one policy. The important feature is that both covers can potentially be paid out - there are two separate sums assured.
Key Features:
- Provides two separate benefits: one for serious illness and one for death
- Payment of the serious illness benefit does not reduce the life cover in any way
- Both benefits can be claimed - serious illness during life and life cover on death
- Maximum protection but comes at a higher premium cost
- Ensures dependants are still protected after a serious illness claim
Reese effects a policy for €200,000 standalone serious illness cover AND €150,000 life cover. The policy has a 14-day survival requirement. Some years later he suffers a stroke but recovers. As he survived for at least 14 days, the €200,000 serious illness sum is paid out. His life cover of €150,000 is not affected. He continues the policy with €150,000 life assurance cover. Some years later Reese dies and €150,000 is paid out as the death benefit. In total €350,000 was paid out under the policy.
Best Suited For:
Individuals who continue to need full life cover even after a serious illness claim, or those who can afford higher premiums and want maximum protection for both serious illness and death.
4. Cancer-Only Cover
Some companies offer a specific serious illness policy which pays out on certain types of cancer only. This specialized cover provides a more affordable option focused on one of the most common serious illnesses.
Key Features:
- Covers specified cancer diagnoses only
- Can be effected for a much lower premium than full serious illness cover
- May be available when full serious illness cover has been declined for reasons other than cancer
- Can be standalone or added to a life policy
- Cannot be accelerated - life cover remains intact if there's a cancer diagnosis claim
Best Suited For:
Those on a tight budget wanting some serious illness protection, or individuals who cannot get full serious illness cover due to pre-existing conditions unrelated to cancer.
| Cover Type | Key Characteristic | Effect on Life Cover | Cost |
|---|---|---|---|
| Standalone | Separate from life insurance | No impact - life cover remains unchanged | Higher premium |
| Accelerated | Combined with life insurance | Reduces or ends life cover when claimed | Lower premium |
| Double Cover | Two separate benefits in one policy | No impact - both can be claimed | Highest premium |
| Cancer-Only | Covers cancer diagnoses only | No impact on life cover | Lowest premium |
Additional Features Available
Children's Cover
Most policies automatically cover your children for the same specified illnesses, typically for half your cover amount or capped at around €25,000, whichever is lower, usually up to age 25.
Partial Pre-Payment
Some policies provide a partial pre-payment (typically €20,000-€30,000) for certain surgeries like heart bypass surgery, helping with immediate costs before full recovery.
Permanent Total Disability (PTD)
Pays out if you become permanently unable to work again due to sickness or disability. Available as "own occupation" or "any occupation" cover.
Loss of Independence
Pays out if you're permanently unable to live independently, such as being confined to a wheelchair or unable to perform basic daily activities.
What Illnesses Are Covered?
Serious illness policies typically distinguish between full payment and partial payment illnesses:
Full Payment Illnesses (complete sum assured payable):
- Most forms of cancer (excluding non-invasive and pre-malignant cancers)
- Heart attacks of specified severity
- Stroke with permanent neurological deficit
- Coronary artery bypass surgery
- Alzheimer's disease
- Multiple sclerosis
- Parkinson's disease
- Kidney failure
- Blindness
- Motor neurone disease
Partial Payment Illnesses:
For less severe conditions, only part of the sum assured is payable. Some providers offer cover for over 50 full payment illnesses and over 40 partial payment conditions. Each illness is defined in detail in the policy conditions.
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