Critical Illness Cover

Insure yourself against hundreds of illnesses

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What is Critical Illness Cover?

Critical Illness Cover is designed to provide protection against the potential financial consequences of a severe illness for both you and your family.

It offers a tax-free lump sum payout in the event you are diagnosed with a critical illness outlined in the policy, which can include specific cancers, heart attacks, or strokes.

This lump sum can serve to replace lost income if your illness prevents you from working.

How does it work

Critical illness cover can be obtained in conjunction with a life insurance policy (referred to as integrated cover) or as an independent policy on its own.

You make regular monthly or annual premium payments for the coverage. If it’s purchased alongside your life insurance, the cost is encompassed within your life insurance premiums, with the additional expense clearly delineated.

Your provider will furnish a specific list of illnesses covered by the policy. If you’re diagnosed with any of these designated conditions, your coverage will yield a payout. Conversely, if you contract an illness not on the list, you won’t receive the payout.

Certain critical illness policies encompass coverage for your children if they are diagnosed with a qualifying serious condition. Alternatively, you might be able to extend family coverage to your policy through additional payments.

The primary benefit from critical illness cover is disbursed once, after which the policy concludes.

Do I need Critical Illness Cover

No matter your identity or age, anyone could potentially encounter a critical illness. If such an illness renders you incapable of working, having a contingency plan can assist in managing the financial aspects while you undergo treatment or recover from the illness.

Hence, critical illness cover might be worth contemplating if:

  • You lack sufficient savings to sustain your mortgage payments and regular expenses should your ability to work be compromised by illness.
  • Your employer doesn’t provide extended illness benefits, or you’re self-employed.
  • Government-provided benefits fall short of covering your expenditures

Before acquiring a critical illness insurance policy, ensure you aren’t already covered by an existing life insurance policy, such as mortgage payment protection cover.

How much does Critical Illness Insurance cost

The price of your policy hinges on several factors, including:

The chosen level of coverage

When deciding on the sum assured (the payout amount upon claiming), it’s crucial to factor in all your expenses. This encompasses mortgage or rent payments, loan repayments, childcare expenses, monthly bills, and more. Also, consider available savings, potential employee or state benefits, to ascertain the suitable coverage amount. Generally, higher payout selections entail pricier premiums.

Your personal details

Your age can influence your premium costs – typically, older ages may lead to higher expenses. Your health, medical history, smoking habits, and any pre-existing conditions will impact your premiums. Your occupation – more hazardous jobs might result in higher charges.

Policy duration

You choose the policy’s term, such as until your mortgage is settled or your children become independent. Policy type – Combining critical illness cover with a life insurance policy could prove more cost-effective. Level or decreasing coverage – In level cover, the payout remains constant throughout the policy term. Conversely, in decreasing cover, the sum assured decreases, often aligned with your mortgage or other long-term debt. This renders decreasing cover the more economical option.

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What does a Critical Illness Policy cover

All critical illness policies typically encompass specific cancers, heart attacks, heart disease, and strokes.

These policies might extend coverage to over 100+ types of critical illnesses, which could include permanent disabilities, multiple sclerosis, Parkinson’s disease, and organ failure.

To ascertain the scope of coverage, it’s advisable to review the policy documents provided by the insurer.

What illness are considered “Critical”

The illnesses covered by critical illness policies are specified in the policy documents provided by each insurer. These listings can vary among insurers, so thorough checking is recommended.

For a payout to be granted, the illness must also meet a certain level of severity. Details regarding the required severity for a payout can be found in your policy documents.

Typical conditions covered by critical illness policies include:

  • Strokes
  • Heart attacks
  • Advanced cancers or tumours
  • Organ transplants
  • Multiple sclerosis
  • Dementia and Parkinson’s disease