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Wednesday, January 25, 2006

What is Critical Illness Insurance?

Arsene Wenger is insured by Arsenal for £5 million under a Critical Illness Insurance Policy (CIC). What exactly is it?

It insures against the risk of some common illnesses which will make you unable to work. These include

• heart attack,
• cancer,
• strokes,
• multiple sclerosis,
• kidney failure,
• major organ transplants
• coronary artery by-pass surgery

Costs of Critical Illness Cover

With ordinary life insurance about 2.5-3x ordinary life assurance

How does it work

Either pays out a lump sum or provides an income if you are diagnosed as having one of a number of illnesses, including cancer, strokes and heart disease. It will pay out even if you make a full recovery.

Cash resulting from a CIC policy is paid directly to you, unlikemortgage payment protection insurance (MPPI), where the policy is paid direct to your mortgage lender.

More information:
ABI's web site

3 comments:

Rob Lewis said...

Interesting Sean - can I ask where you found out that info about Arsene Wenger?

Sean Wilson said...

http://money.independent.co.uk/personal_finance/insurance/article143277.ece

The information is now quite old!

Rob Lewis said...

Crikey, I wish I had the job of re-broking that policy, seeing as it is nearly 5 years old!