Critical Illness Insurance is a type of insurance that provides a lump sum payment if you are diagnosed with a serious illness covered by the policy. This financial support is designed to help you manage the costs and lifestyle changes associated with serious health conditions, such as cancer, heart attack, stroke, or multiple sclerosis. Critical illness insurance is typically purchased alongside other types of health or life insurance to offer additional protection against financial difficulties caused by major health events.
When you take out critical illness insurance, you pay regular premiums to the insurer. If you are diagnosed with a covered illness during the policy term, and the condition meets the criteria set out in the policy, the insurer pays you a lump sum. This lump sum can be used for a variety of purposes, such as paying for private medical treatment, covering household expenses, paying off debts, or making necessary adjustments to your lifestyle (such as home modifications or hiring care staff).
The insurance typically covers life-threatening or life-altering conditions. Common illnesses covered include:
- Cancer
- Heart attack
- Stroke
- Multiple sclerosis
- Major organ failure
Each policy has its own set of conditions, so it is important to read the terms and exclusions carefully. Some policies may also cover additional illnesses, while others might have stricter criteria for what qualifies as a claim.
Lump Sum Payment
The policy pays out a tax-free lump sum if you are diagnosed with a covered critical illness. This helps provide financial security during a difficult time.
Financial Security
The payout can be used to cover costs not typically covered by health insurance, such as household bills, rehabilitation, or lifestyle adjustments.
Peace of Mind
Knowing you have financial protection in place can help ease the emotional burden of dealing with a serious illness.
Covers Serious Illness
Policies typically cover a range of serious conditions, but it's important to check the policy’s specific coverage to ensure it aligns with your needs.
While critical illness insurance provides valuable financial protection if you face a life-altering illness, it does not cover every health issue. You also need to meet certain criteria for a claim to be accepted and some illnesses may have waiting periods or exclusions. Additionally, premiums can vary depending on your age, health, and the amount of coverage. It is therefore crucial to understand the specifics of the policy and consider it as part of a comprehensive financial plan.
If you have any questions regarding critical illness insurance please get in touch with our team of qualified financial advisers for a no obligation chat.
Imogen Tallent
Financial Adviser
The earliest known life insurance policy was made in Royal Exchange, London on 18 June 1583. A Richard Martin insured a William Gybbons, paying thirteen merchants 30 pounds for 400 if the insured dies within one year.
The required coverage of protection will depend on factors such as outstanding debts (e.g., mortgage), future family expenses and your income. Our financial advisers will work with you to understand your specific circumstances and help you determine an appropriate level of cover.
Yes, it’s possible to hold multiple policies to cover different needs, such as a mortgage protection and family income protection.
No, critical illness cover provides a payout upon diagnosis of a covered illness, whilst life assurance pays out upon death.
Many insurers offer combined policies, allowing you to add critical illness cover to your life insurance.
It depends on your specific circumstances and the insurer but typically, pre-existing conditions are excluded meaning claims related to them may not be paid.
Fill in the form below to receive our FREE informative Guide to Protection and what it involves, straight to your inbox.
We won’t share your details, check out our Privacy Policy for information about how we use your data.
Thoughts from our clients...
