Critical Illness Cover

Critical illness cover is designed to provide a lump-sum payment if you are diagnosed with or undergo treatment for a specified illness or condition covered by your policy and meet the insurer’s claim definition.

The conditions covered, severity requirements and any survival period vary between insurers, so it is important to compare more than simply the number of illnesses listed.

Critical illness cover can provide financial support if you are diagnosed with a serious illness covered by your policy.

The lump sum could be used towards your mortgage, household bills, adapting your home, private treatment or simply reducing financial pressure while you recover.

Whether critical illness cover is appropriate will depend on your circumstances, existing protection, savings, financial commitments and budget.

Critical illness cover and income protection provide different types of financial support.

Income protection can provide a regular benefit if illness or injury prevents you from working, while critical illness cover normally provides a lump sum following diagnosis of a specified condition covered by the policy.

Depending on your circumstances, the two types of cover can complement each other rather than one necessarily replacing the other.

Critical illness cover is designed to provide a financial benefit during your lifetime if you are diagnosed with or undergo treatment for a specified condition covered by the policy.

Life insurance is primarily designed to provide a lump sum following the death of the person insured.

The two types of cover can be arranged together or separately depending on the insurer and your protection needs.

You may still be able to get critical illness cover if you have a pre-existing medical condition, but this will depend on the condition, your medical history and the insurer’s underwriting criteria.

An insurer may offer standard terms, charge an increased premium, exclude certain conditions or, in some circumstances, be unable to offer critical illness cover. Different insurers can assess the same medical history differently, so comparing providers can be particularly important.

Critical illness cover is primarily designed to pay following diagnosis of a specified illness or condition rather than on death.

Many policies require the person insured to survive for a specified period after diagnosis before a full critical illness claim is payable. If life insurance is included alongside the critical illness cover, a separate life insurance benefit may apply depending on the policy terms.

This depends on the insurer.

Some providers may offer critical or serious illness protection on a standalone basis, while others offer critical illness cover alongside a life insurance policy.

We can compare the structures available and recommend an appropriate arrangement based on your protection needs.

Cancer, heart attack and stroke are consistently among the most common reasons for critical illness claims across major UK insurers.

The exact pattern varies between providers and from year to year, but cancer typically accounts for the largest proportion of critical illness claims.

Age limits vary between insurers.

Providers set their own maximum age for taking out critical illness cover, maximum policy term and maximum age at which the policy can end. These limits can also differ depending on the type of cover selected.

We can check the insurers available based on your age and the length of cover you require.

Critical illness cover can cost more than life insurance alone because it provides an additional benefit if you are diagnosed with one of the illnesses or conditions covered by the policy during your lifetime.

Premiums can be affected by factors including your age, health and medical history, smoking status, the amount of cover required, policy term and the level of cover provided by the insurer.

The cheapest policy will not necessarily provide the most suitable cover, so it is important to compare both cost and policy features.

Children’s critical illness cover is included with some policies and available as an optional benefit with others.

The ages covered, illnesses included, maximum benefit and number of claims allowed vary between insurers. Some providers also offer enhanced children’s cover for an additional premium.

We can compare these benefits when recommending a policy where children’s cover is important to you.

The appropriate amount of critical illness cover will depend on what you would want the policy to achieve.

You may wish to consider your mortgage or other debts, household expenditure, income, savings, dependants and any additional costs you could face following a serious illness.

We can help calculate an appropriate level of cover based on your circumstances and budget.

The appropriate policy term will depend on what you want the cover to protect.

For example, you may want cover to run alongside your mortgage, until your children are financially independent or until a particular retirement age.

The term available will also depend on the insurer’s maximum age and policy limits.

A successful full critical illness claim will normally end or reduce the relevant cover, depending on the policy terms.

However, some policies include additional or partial illness benefits that can pay without ending the main cover. Some providers may also allow further claims for different conditions.

Children’s critical illness claims may also operate separately from the main adult cover.

Whether more than one claim can be made therefore depends on the insurer and the specific policy terms.

The amount paid will depend on the level of cover selected and the type of claim.

A successful claim for one of the policy’s main critical illness definitions will normally pay the full amount of relevant cover.

Some policies also include additional or partial-payment conditions that pay a smaller amount without necessarily reducing or ending the main critical illness cover.

The payment structure and limits vary between insurers, so the individual policy terms should always be checked.