Critical Illness Cover

Critical illness cover is a type of insurance designed to support you financially if you are diagnosed with a serious health condition.

It pays out a lump sum, which you can use however you need, whether that is covering household bills, paying for private treatment, or giving yourself time to recover without rushing back to work.

The term “critical illness” refers to conditions that are severe and life-altering. These often include cancer, heart attacks, strokes, and other illnesses that can impact your ability to work or live independently. Each insurer has a defined list, and the condition must meet their specific criteria to trigger a payout.

This type of policy is often used alongside life insurance or income protection to give you more complete coverage, so you are supported whether the challenge is temporary, long-term, or life-threatening.

Critical illness cover provides financial support at a time when your health may prevent you from earning. If you are diagnosed with a serious medical condition, the payout can help protect your lifestyle and ease the pressure on your family.

Many people use the money to pay off a mortgage or cover essential bills. Others may put it towards treatment, recovery time, or home adaptations. It is designed to give you options and stability when life becomes more complicated.

Rather than relying on savings or support from others, this cover can help you maintain control and focus on your health without added financial strain.

The cost of life and critical illness cover depends on your age, health, lifestyle, job, and how much cover you want. Combining both types into one policy is usually more affordable than buying them separately, but the premium still varies based on your individual circumstances.

You will pay more for a higher payout amount, a longer policy term, or if you have pre-existing conditions. Smokers and people in higher-risk jobs may also pay more. Critical illness cover adds to the overall cost of life insurance, but for many, the added support is worth it.

We can help you understand the balance between cost and cover, so you are not paying more than you need for the peace of mind you want.

No, critical illness cover and payment protection insurance are completely different. Critical illness cover pays out a lump sum if you are diagnosed with a serious medical condition. PPI is tied to specific debts, such as loans or credit cards, and is designed to cover your repayments if you cannot work due to illness or redundancy.

PPI only supports loan payments for a set time and has limited flexibility. Critical illness cover is broader and pays money directly to you, allowing you to use it however you see fit.

If you want to protect your income and lifestyle during a serious health issue, critical illness cover is the more comprehensive option.

You are not required to have critical illness cover when applying for a mortgage, but it can be a sensible option. If you were to become seriously ill and could not work, the mortgage would still need to be paid. A critical illness policy can provide a lump sum that helps pay off the remaining balance or gives you extra support while you recover.

Many people combine this with life insurance to protect the home whether they pass away or face a serious diagnosis. It is a way to protect the roof over your head if your health takes an unexpected turn.

Critical illness cover is not about predicting the worst. It is about having something in place in case life changes suddenly. A serious illness could leave you unable to work, and without support, the financial impact can be immediate.

The payout can help keep your home secure, cover your usual expenses, or allow you to step back from work while you recover. It gives you more choice and flexibility at a time when your focus should be on your health, not your bank balance.

For many people, this kind of cover offers reassurance that they will not need to rely on savings or support from others if illness strikes.

Yes, you can take out critical illness cover on its own without life insurance. Some people choose to do this if they are more concerned about protecting their income and lifestyle during illness than they are about leaving behind a payout after death.

Standalone critical illness cover works the same way as when it is combined with life insurance. If you are diagnosed with a serious condition listed in the policy, you receive a lump sum. This can help you manage bills, cover medical costs, or reduce financial stress while you recover.

That said, many people do choose to take both together, especially when arranging a mortgage or supporting a family. It often comes down to personal preference, budget, and what matters most to you.

Decreasing critical illness cover is a type of policy that reduces in value over time, usually in line with a repayment mortgage. It is designed to pay off your mortgage balance if you are diagnosed with a serious illness during the policy term.

This type of cover is often chosen by homeowners who want to protect their property but do not need a fixed payout amount. Because the level of cover reduces over time, the premiums are usually lower than a level-term policy. It is a cost-effective way to make sure your home is protected if your health takes an unexpected turn.

You can take it out on its own or alongside life insurance as part of a broader protection plan.

The amount of critical illness cover you need depends on your lifestyle, financial commitments, and what you want the payout to do for you. Some people choose enough to clear their mortgage, while others want to replace their income for a year or two while they recover.

It is worth thinking about your regular outgoings and any debts or financial responsibilities your family would still need to manage. If you are the main earner, or if your household would struggle without your income, a higher level of cover may be right for you.

There is no fixed amount you must have, but having some cover in place is usually better than none at all. We can help you work out a figure that fits your circumstances and feels manageable for your budget.

For many people, yes, critical illness cover is worth it. Serious illness can strike at any age, and the impact on your ability to work, earn, and maintain your lifestyle can be immediate. This type of cover gives you the financial support to cope during what is already a very difficult time.

It is especially valuable if you have a mortgage, a family, or if your employer does not offer long-term sick pay. Even a smaller payout can give you enough breathing space to focus on recovery without having to worry about falling behind on bills or relying on savings.

Whether it is worth it for you depends on your situation, but if illness would cause financial stress in your household, having a safety net in place can make all the difference.

The “Big 5” critical illnesses usually refer to the five most commonly claimed conditions under these types of policies. These are:

• Cancer
• Heart attack
• Stroke
• Multiple sclerosis
• Coronary artery bypass surgery

These conditions make up the majority of successful claims, and most policies include them as standard. That said, insurers may cover more than 30 conditions in total, and the specific definitions can vary.

Some policies also offer partial payouts for earlier stages or less severe forms of these illnesses. We can walk you through what each policy includes, so you are clear on what is covered and how the claims process works.

Critical illness cover pays out when you are diagnosed with a serious illness that is specifically listed in your policy and your diagnosis meets the criteria set by your insurer. This is usually based on the severity of the condition and how it affects your ability to function or recover.

Once you have a confirmed diagnosis and supporting medical evidence, you can start a claim. If approved, the payout is made as a lump sum and can be used however you need, whether that is covering living costs, paying for treatment, or adjusting your work and home life.

The policy only pays once and ends after the payout, so it is important to understand what conditions are covered before you take it out. If you are unsure, we can explain how different policies work and what to look for.

Most policies do not have a strict time limit from the date of diagnosis, but it is important to start the claim process as soon as you can. The longer you wait, the more difficult it may become to gather the necessary medical evidence or confirm your eligibility.

You usually need to be diagnosed with the illness during the active term of the policy. If your diagnosis comes after the policy has ended, even by a short time, the claim will not be accepted.

We always recommend contacting your insurer or speaking to us as soon as you receive a diagnosis that might qualify. That way, we can help guide you through what information is needed and ensure the process goes as smoothly as possible.

Critical illness cover is for anyone who wants to protect their income or financial commitments in case of serious illness. It is especially popular with people who have a mortgage, children, or others who depend on them financially.

Many take out cover when buying a home, starting a family, or becoming self-employed. Even those with some sick pay from work often use it to add an extra layer of protection.

It is not about expecting the worst. It is about being realistic. If a serious health condition would cause financial strain in your household, this type of cover can make a big difference.

Both types of cover provide support when your health affects your ability to work, but they do it in different ways. Critical illness cover pays out a one-off lump sum when you are diagnosed with a specific condition listed in the policy. Income protection provides regular monthly payments if you are unable to work due to illness or injury, no matter the diagnosis.

Critical illness cover helps with larger expenses or life changes, like clearing a mortgage or paying for treatment. Income protection is better for maintaining your monthly outgoings, like rent, bills, and everyday living costs.

Many people choose to have both, so they are covered for both short-term income loss and long-term health issues. We can help you understand how each type works and which might suit your circumstances.

Critical illness cover is one part of a wider set of protection options. You might also consider life insurance, which pays out a lump sum if you pass away during the policy term. This can support your family financially or help pay off a mortgage.

Income protection is another popular option, offering regular payments if you are off work due to illness or injury. For those with children, family income benefit pays out as a monthly income rather than a lump sum.

Each type of cover does something different. We can help you look at the full picture and build a combination that fits your lifestyle and the people who rely on you.