Insurance People Often Overlook (Until They Need It!)

The one insurance people often overlook (until they need it!)

Many people assume that having Life Cover in place is enough to protect their family financially, but that’s not always enough to cover all eventualities. Specified Illness Cover, also known as critical illness cover, offers a different protection that can be particularly valuable as you move through life, particularly in your 40s and 50s.

Understanding the risk

Serious illnesses such as heart disease and cancer unfortunately remain common in Ireland. In fact, chronic ischaemic heart disease was the leading cause of death in 2022, and together, circulatory diseases and cancer accounted for roughly a third of all deaths in Ireland.

The positive news is that medical advances mean survival rates are improving. However, while more people are living through major illnesses, recovery often brings its own financial pressures - from treatment costs to loss of income and lifestyle adjustments.

Why Life Cover alone may not be enough

Life Cover plays a vital role in protecting your family if you pass away, but it doesn’t provide support if you’re diagnosed with a serious illness and survive. If illness stopped you from working, Life Cover wouldn’t help pay the mortgage, cover children’s expenses, or manage day-to-day living costs.

This is where Specified Illness Cover steps in. It can help you stay financially secure while you focus on getting better.

How Specified Illness Cover works

If you’re diagnosed with one of the conditions listed in your policy, you’ll receive a tax-free lump sum. Some policies even include partial payments for less severe conditions, such as early-stage cancers or minor strokes, giving you access to support sooner. You can use this money however you choose, for example:

Covering medical treatment or rehabilitation

Reducing or clearing your mortgage

Replacing lost income during recovery

Making home adaptations if needed

Providing financial breathing space for your family

Things to keep in mind

Like any financial protection, Specified Illness Cover comes with considerations. Premiums can be higher for those who are older or have health risk factors, and insurers define illnesses very precisely, so it’s important to understand what’s covered before you buy. There’s also a chance you’ll never make a claim, but in this case, that’s actually a positive outcome - it means you’ve stayed healthy.

When it’s worth considering

Specified Illness Cover can be particularly valuable if:

You have dependents or a mortgage reliant on your income

You have limited savings or an emergency fund

You’re in your 40s or 50s and still working full time

You want greater certainty and control over your finances

Rather than viewing it as an optional extra, think of Specified Illness Cover as a complement to Life Cover. Together, they create a more complete financial safety net.

The bottom line

Specified Illness cover isn’t a gimmick, it’s a practical layer of protection that can bring real peace of mind. It helps you manage the financial impact of illness so you can focus on recovery, not bills. The key is balance: weigh the cost of the premium against the potential hardship of being unable to work for an extended period.

If you’re unsure whether Specified Illness cover is right for you, contact your local office and our Financial Planning team can help assess your needs and guide you through the options.

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