Critical illness cover is designed to pay a lump sum if you are diagnosed with a condition covered by the policy and meet its definition. The money reduces financial pressure while you focus on treatment and recovery.
It is different from life insurance and income protection, so understanding what it does and what it does not do is important.
What can critical illness cover help with?
A valid payout can normally be used as you choose. Use the payout to:
- reduce or repay a mortgage;
- cover household bills while working less;
- pay for childcare or practical support;
- adapt the home;
- fund travel or recovery costs; or
- create a financial buffer.
Which illnesses are covered?
Policies commonly cover specified serious conditions, but the list and definitions vary between insurers. A diagnosis by itself does not always guarantee a payout: the condition must normally meet the policy definition and any required severity level.
Some policies also include additional or partial payments for certain less severe conditions. Always compare the wording, not only the number of conditions advertised.
How is it different from life insurance?
Life insurance is primarily designed to pay following death, or terminal illness where included and the definition is met. Critical illness cover is intended to pay when the insured person survives a covered diagnosis meeting the policy terms.
The two can be arranged separately or combined. With some combined policies, a critical-illness claim can reduce or end the remaining life cover, so check the structure carefully.
How is it different from income protection?
Critical illness cover usually pays a lump sum after a qualifying diagnosis. Income protection is designed to pay a regular income when illness or injury prevents you from working and the policy definition is met.
Read how income protection works, or compare critical illness cover and income protection directly.
What affects the cost?
Pricing can depend on age, health, smoking or nicotine use, occupation, the amount of cover, policy term and options selected. Medical history can affect the price, exclusions or whether cover is available.
Is critical illness cover worth considering?
The answer depends on the financial impact a serious illness has on you and your family. Consider existing savings, employer benefits, sick pay, debts, dependants and how long the household could manage if income changed.
The cheapest policy is not automatically the best. Definitions, exclusions, additional-condition benefits and the underlying insurer all matter.
Frequently asked questions
Does it cover every serious illness?
No. It covers only the conditions and definitions listed in the policy.
Can children be covered?
Some adult policies include or offer children’s critical illness cover, subject to specific limits and definitions.
Can I claim more than once?
That depends on the policy. A full claim may end the cover, while some additional benefits may work differently.
Will a previous medical condition be covered?
The insurer will assess medical information during underwriting and may apply terms, exclusions or decline cover. Answer all questions accurately.
Discuss the protection gap
A regulated adviser can help you compare life insurance, critical illness cover and income protection around your needs and budget.
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This guide provides general information and is not personal financial advice. Definitions, exclusions, eligibility, underwriting and policy terms vary. ActiveJoe itself does not provide financial advice; regulated advice is provided by Tailored Life Solutions Ltd advisers.