Critical illness cover
A tax-free lump sum on diagnosis of a defined serious illness. Cancer, heart attack and stroke account for most claims, but the policy wording matters more than the headline price.
Critical illness cover pays a lump sum if you are diagnosed with one of the conditions defined in your policy. Definitions vary widely between insurers, and that detail matters more than the premium. A lower premium often means a narrower set of covered conditions. We compare policy wording, not just price, and explain in plain English how differences in insurers' definitions can affect whether a future claim is paid.
Who this is for
- You have a mortgage or dependants and could not work for six to twelve months without serious financial strain.
- You already have life cover but nothing if you survived a serious illness.
- Your employer sick pay runs out after a few months and there is nothing on top.
- You have been quoted critical illness on price alone and want to understand what is actually covered.
What critical illness cover does, and what it does not
Critical illness pays a lump sum if you are diagnosed with one of the conditions named in your policy and you survive a defined number of days (typically 14 to 28). The pay-out is tax-free and you can spend it on anything: clearing the mortgage, paying for private treatment, replacing income, adapting the home, or all of the above. It does not pay an income, and it does not pay on every illness; only the named conditions.
Why definitions matter more than price
The big three claims (cancer, heart attack, stroke) make up the bulk of pay-outs, but the wording on each varies between insurers. One insurer may pay out on early-stage prostate cancer; another may not. One may pay out on a stroke with permanent symptoms after seven days; another may require 24 hours of unconsciousness. The price-leader product is often a price-leader for a reason: a tighter definition that pays out less often. We compare on quality of definition and breadth of conditions covered (typically 50 to 100), not on premium alone.
Children's critical illness
Most critical illness policies include free cover for any biological or adopted children, typically up to £25,000 per child. Some are richer than others. If a child of the household has, or is at risk of, a serious condition, this matters. We flag policies with stronger childhood condition lists.
Combined or standalone
Critical illness is most commonly bought combined with life cover (one premium, one of the two pays out, the policy ends). A standalone policy costs more but means a critical illness claim does not exhaust the life cover. For families with a substantial mortgage, two separate policies often work out better value than one combined.
Total permanent disability and partial pay-outs
Most policies include total permanent disability (TPD) cover at no extra cost. Many now include partial pay-outs (typically 25 to 50% of the sum assured) on less severe conditions. Newer policies have richer pay-out structures than older ones, so existing cover is often worth reviewing.
Disclosure, again
As with life cover, full and honest disclosure is the single most important thing. We pre-assess any conditions, family history of cancer, recent investigations, mental health treatment, BMI, before sending the application, so the right insurer sees the right profile first.
How Major Money Matters helps
Specific things we do for this product. No generic platitudes.
Compare on wording, not price
We benchmark insurer definitions for cancer, stroke, heart attack and the other top claims so the policy that comes out ahead is the one that pays out, not the one that simply quotes lowest.
Right structure for your household
Combined with life cover, standalone, or as a mix. We model the trade-off in pounds and policy wording so you decide on the numbers.
Pre-assess medical risk
If you have any prior condition, diabetes, anxiety, raised BMI, family history, we approach the insurer most likely to underwrite cleanly first.
Set up trusts and beneficiaries
Trust documentation alongside the application so a payout goes to family directly, not via probate.
Frequently asked questions
How likely am I to claim?
Insurers publish their own claims statistics each year, and we will go through the published figures for the insurers we are recommending with you. The "horror story" cases of refused claims are almost always non-disclosure: someone failed to mention a condition or symptom at application.
How many conditions are covered?
Mainstream critical illness policies cover 50 to 100 conditions. The number is a marketing metric, not a quality one. Five clear, well-worded conditions matter more than 90 vague ones. We compare on the top ten claim drivers.
What is the difference between critical illness and income protection?
Critical illness can pay a lump sum for a listed condition meeting the policy definition and claim terms. Income protection can pay a regular benefit where inability to work meets its definition, after the deferred period and subject to exclusions and limits. An adviser can compare the different needs they address; neither guarantees payment for every diagnosis or illness.
Can I get critical illness cover with a pre-existing condition?
Usually yes, with terms. The condition itself may be excluded; the rest of the cover is in place. Insurer attitudes vary widely. The same applicant can receive a clean acceptance from one insurer and an exclusion from another.
How much does it cost?
A 35-year-old non-smoker in good health can typically get £100,000 of combined life and critical illness cover over 25 years for £30 to £45 a month. Standalone critical illness usually adds 50 to 100% to the cost of life cover alone.
Do I need critical illness if I have death-in-service?
Death-in-service pays only if you die. Critical illness pays if you survive a serious illness, which is a different (and statistically more likely) risk. Most employers do not provide critical illness benefits.
Related
Other protection products that often pair with this one.
Life insurance
A lump sum on death, written in trust, sized to clear the mortgage. Often the least expensive way to cover a repayment mortgage.
Read moreIncome protection
A monthly income, tax-free, if illness or injury stops you working. Replaces 50 to 70% of salary. The most overlooked piece of protection.
Read moreFamily income benefit
A monthly tax-free income for the family if you die during the term. Cheaper than level-term life cover; easier to budget around.
Read moreWhat our clients say
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Have your critical illness wording checked
If you already have cover, send the policy schedule. We will compare what you have today against the current top-rated policies and tell you whether it is worth changing.
We aim to return your call as quickly as we can. Mon to Fri 9am to 5pm, weekend appointments on request.