How critical illness cover can take care of you

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
Our authors
, updated on November 25th, 2021       

Fact checked

At Savvy, we are committed to providing accurate information. Our content undergoes a rigorous process of fact-checking before it is published. Learn more about our editorial policy.

Becoming critically ill can leave your world upside down when you least expect it. The question is are you financially prepared should you fall ill? Critical illness cover is created towards taking care of you and your loved ones when you are unable to due to sickness, so you can spend more time getting healed with a peaceful mind. There are many benefits that you can reap, but there are the basics that you need to understand.

You will be able to take care of ongoing expenses

Although critical illness can cause drastic changes to your world and financial situation, if you are covered for critical illness you will be able to take care of the adjustments without the financial woe. Critical illness cover pays a lump sum to cover any of the ‘Big 4’ illnesses such as; cancer, stroke, heart attack, coronary bypass and other major illnesses. In the event where critical illness strikes, your critical illness cover will strike back by paying a lump sum to take care of ongoing medical expenses, treatment, or any associated costs related to lifestyle changes.

Critical illnesses shouldn’t be seen as a death sentence, but a temporary set back that can be overcome if caught in the early stages of the disease. As many as 56,000 Australians have suffered from a stroke, but more than 80% are preventable.

You can get as much cover as you deem necessary

Critical illness cover falls under life insurance which is designed to make life as you know it continue when you are no longer able to do so. Critical illness can be seen in the analogy of ‘what you saw is what you will reap.’ You have the choice to choose how much cover you believe will be adequate to keep financing your lifestyle. This means you have to factor in everyday expenses, and something that will be able to cover your family should you no longer be able to work. The aim is to get something that you will be able to afford, and that will be adequate to maintain you.

With its manageable premiums, you will be able to get an adequate cover that you desire. Payouts can range from $50,000 to $500,000 to help assist you and your family manage this stressful time.

Check the adequacy of your superannuation life insurance policy

Some Australians have attempted to take care of their life insurance policies through their superannuation fund, which might have you wondering why you will need another life insurance policy. However, research has revealed that some superannuation policies only cover 20% of what you need. Another thing you need to keep in mind is that life insurance policies that are bought through superannuation's are tailor-made towards a group and not your individual needs.

This is a major shortfall to what is needed to cover your needs. It can be stressful especially if you have dependents. With any policy that you take out you need to scrutinise its features and quality to know if it's something that will work for you or cost you in the long run. To dispell myths of critical illness cover being expensive you can conduct your own comparison on various quotes to see that this is not true. The cost will vary by age and what you would like to have covered, but in the end, your life should be valued more than anything.