Considering Serious Illness Cover as a New or Expectant Mum?

Becoming a mum, whether it’s for the first time or not, can be an exciting and transformative experience. It’s a time of profound change, filled with new routines, new responsibilities, and a new perspective on life. As you focus on nurturing your little one, you may also find yourself thinking more about the future and how you can help protect your family financially, whatever life may bring.

One topic that can come up is financial protection insurance. While it’s not something anyone enjoys thinking about, understanding the options available can be a practical step. This guide is designed to walk you through the details of Serious Illness Cover, helping you understand what it is, how it works, and why it might be a consideration for you and your family at this important life stage.

In short: What is Serious Illness Cover?

Serious Illness Cover is a type of insurance policy designed to pay out a one-off, tax-free lump sum if you are diagnosed with one of the specific medical conditions listed in your policy. The aim is to provide financial support to help reduce money worries at an already difficult time.

Why might new mums think about financial protection?

Welcoming a new baby often brings a significant shift in financial dynamics. You might be navigating maternity leave, which could mean a change in income, or you may be adjusting to the new day-to-day costs that come with a growing family.

For many women, this period highlights the importance of financial stability. If you were to become seriously ill and unable to work, the financial impact could be considerable. This is where having a potential safety net can be a reassuring thought. It’s not about dwelling on the worst-case scenario, but about taking measured steps to feel more prepared for the future. Reviewing your financial protection options could be a proactive step in planning for your family’s financial security.

At Polly, we believe in supporting women through every life stage. The aim is to provide access to information and options that can help you make choices that feel right for you and your loved ones.

What exactly is Serious Illness Cover?

It can be easy to get different types of insurance confused, so it can be helpful to be clear on what makes Serious Illness Cover distinct.

• Serious Illness Cover vs. Life Insurance: The main difference is that Serious Illness Cover is designed to pay out to you upon the diagnosis of a specified serious illness while you are still alive. Life insurance, on the other hand, is designed to pay out a lump sum to your loved ones after you pass away.
• Serious Illness Cover vs. Income Protection: Income Protection insurance is designed to pay out a regular monthly sum—a percentage of your income—if you’re unable to work due to illness or injury. Serious Illness Cover provides a one-off lump sum, which can be used in any way you choose.

Our Polly Serious Illness Cover policy is a type of financial protection insurance. It’s created to help provide a financial buffer, giving you one less thing to worry about if you were to become unwell with a specified condition.

How could a lump sum from Serious Illness Cover help?

If you were to receive a payout from a Serious Illness Cover policy, the money could be used in any way that suits your family’s needs. The intention behind the lump sum is to help ease financial pressures so you can focus more on your health and recovery.

While every family’s situation is unique, here are some of the ways a payout could be used:

• Covering essential outgoings: The payment could go towards your mortgage or rent, utility bills, and weekly food shops.
• Replacing lost income: It could help provide a financial cushion to cover costs while you are not earning.
• Paying for specialist care: It might be used to access specialist medical treatments or equipment that may not be available on the NHS.
• Making life more comfortable: The funds could be used for home adaptations or hiring help with childcare to make daily life more manageable during recovery.

The goal is to give you and your family financial flexibility and options during a challenging period.

What kinds of conditions are typically covered?

A key aspect of any Serious Illness Cover policy is the list of specific conditions it covers. It’s very important to understand that a policy will only pay out if your diagnosis meets the exact definition stated in the policy terms and conditions.

Polly Serious Illness Cover is designed to cover a range of serious conditions. The most common reasons for claims across the industry are typically related to:

• Specific types of cancer
• Heart attack
• Stroke

Our policy also includes cover for many other specified conditions, such as major organ transplant, multiple sclerosis, and dementia.

Furthermore, Polly Serious Illness Cover also includes a children’s benefit element at no extra cost. This means the policy is designed to pay out a smaller lump sum if your child is diagnosed with one of the specific children’s serious illnesses covered by the policy.

For a complete and detailed list of every condition covered, along with their precise medical definitions, you must refer to the Policy Conditions document.

Common questions for new and expecting mums

Can I get Serious Illness Cover while I’m pregnant?

It is often possible to apply for Serious Illness Cover when you are pregnant. The insurance provider will assess your application based on your health and circumstances, which is a standard process known as underwriting. It’s always best to be open and honest in your application so the insurer has the right information.

How much cover might I need?

This is a personal decision with no single right answer. When thinking about the amount of cover, you might want to consider:

• Any outstanding debts, such as a mortgage or loans.
• Your family’s monthly living expenses.
• How much of your income the lump sum would need to cover, and for how long.
• Whether you would want a financial cushion for other costs, like potential private medical care.

It’s about choosing a level of cover that you feel would provide meaningful support for your family’s circumstances.

How is the cost of the premium calculated?

The monthly premium you pay for a policy is based on several individual factors, including:

• Your age: The younger you are when you take out the policy, the lower the premiums tend to be.
• Your health and lifestyle: Insurers will ask about your medical history and whether you smoke.
• The amount of cover: A larger lump sum will result in a higher premium.
• The policy term: How long you want the cover to last.

The best way to understand the potential cost is to get a personalised quote.

TL;DR: A Quick Summary

• What it is: Serious Illness Cover is a policy designed to pay a one-off, tax-free lump sum if you’re diagnosed with a specific condition listed in the policy.
• Why consider it: Becoming a mum can often make you think more about your family’s financial security. This type of cover could act as a financial safety net.
• How it could help: A payout could be used for anything from covering bills and mortgage payments to paying for specialist care, helping to reduce financial stress during a difficult time.
• What’s covered: Policies cover specific conditions like certain types of cancer, heart attack, and stroke. You must check the policy documents for the full list and precise definitions.
• Getting cover: It’s often possible to apply while pregnant, but the insurer’s decision will depend on your individual circumstances and could be postponed until after birth.

Taking the next step

Thinking about financial protection is a personal journey. The aim is to feel informed and empowered to make the decisions that are right for you. If you think Serious Illness Cover could be a suitable option for your family, the next step is to get more information.

You can find out more about Polly Serious Illness Cover or get a no-obligation quote today.