Critical illness cover for contractors
Is contractor critical illness cover the same as life insurance for contractors? No. It’s not the same as income protection, either. But it will help protect your lifestyle should you be diagnosed with a critical illness.
Today, diagnoses of serious illnesses or conditions needn’t carry the dire connotations they once did. Thanks to scientific advances, many more people survive their illnesses today than ever before. It makes sense, then, that there should be a specific policy to cover contractors for serious illness.
What level of critical illness cover do you need?
When determining the level of critical illness cover you need, it’s crucial to consider your dependants as well as yourself. The likelihood is, one of your family will need to support you through the recovery process. So it might not just be your income you need to replace.
It’s going to be tough enough for you and your loved ones to cope with the consequences of a critical illness diagnosis. You don’t want to be simultaneously worrying about whether you have enough money to get you through. Nor do you want the pressure of feeling you should get back to working your contract.
What to consider when choosing your policy
There will be things you won’t have considered. There may be things you think are important, but won’t need. That’s why it’s critical you talk to an experienced protection specialist before taking out a critical illness policy. They’ll give you visibility of what is and isn’t covered to help you make clear choices.
What it’s crucial to understand is how a critical illness diagnosis might upend your lifestyle. To begin with, consider the following:
- You’re likely to be at home for long spells
- You may have an intense recovery programme, meaning you’ll have to rely on others to transport you to appointments
- Your home as it is may not lend itself to your mobility, accessibility and recuperation
- Can your family genuinely support you, or do you need a carer/children’s nanny?
- You’ll likely consume more energy, and rely on subscriptions for entertainment
- How capable will you be of continuing your current contractor role post-recovery?
- How will taking on a different role (with possibly fewer hours and less pay) affect your post-illness lifestyle?
Your policy must cover you for these eventualities at the very least.
Why a bespoke contractor critical illness policy is essential
Critical illness policies differ greatly from provider to provider. The level of cover improves the more generous the premiums you pay. As well as the considerations above, the following criteria are also pertinent to your policy type:
- Your age
- Your occupation as a contractor, and the ‘risk’ associated with that role (e.g. an oil and gas contract may be perceived as a greater risk to your welfare than an IT contract)
- Any pertinent health and lifestyle choices (this may include your hobbies, sports and fitness endeavours, and things such as smoking;
- Your family medical history (if applicable)
- Your dependants, and the level of income you’d need the policy to generate to support them
- The policy itself, including, its type, term and your cover amount
Whilst many of those factors apply to all workers, others are specific to contractors. If your critical illness policy doesn’t cover those specifics, it won’t be worth the paper it’s written on, in the event of you making a claim.
Don't leave it any longer. Get a critical illness cover quote today.
Make sure your critical illness policy does what you need it to
Not all providers cover the same illnesses. Ask your policy advisor to run through what your chosen provider covers and ensure it suits your needs. This includes any cover for existing conditions and illnesses if you have them.
Your premiums will cost you more the higher the amount you cover yourself for. But don’t sell yourself short. Again, if the cover you receive is insufficient, the policy isn’t doing its job. It’s not the cost of the premiums that’s the key factor. It’s the ability to uphold the quality of your lifestyle in the result of a serious illness diagnosis that counts.
Ready to secure your future?
Start your protection journey by filling out our simple enquiry form today:
Stage 1: Select the protection type
Stage 2: Complete brief details and one of our specialist protection insurance brokers will contact you
Can you take out income protection and critical illness cover?
Absolutely. And there’s every reason you should. Time off work for critical illness can easily stretch beyond a year.
If you’ve got contractor income protection and critical illness cover, you can receive the payout from the latter, and receive monthly payments from the former. That is, providing you have valid sick notes from your medical professional(s).
Knowing you are financially secure will positively boost your mental health. And to recover physically in the best time possible you must stay on top of your mental wellbeing.
