Critical Illness Cover
Surviving a serious illness shouldn't mean losing your financial security
Critical illness cover pays a lump sum if you're diagnosed with a specified serious illness that meets the policy's definition.
More people now survive conditions such as cancer, heart attack and stroke. Recovery can take months, and the money can help with mortgage payments, lost income or changes at home while you focus on getting better.
Free initial conversation, with no obligation. You deal with Des directly.
At a glance
What it pays
A lump sum if you're diagnosed with a covered illness that meets the policy definition
Who it's for
Anyone whose finances would suffer during a long recovery
How it's arranged
On its own, or combined with life insurance
Important
The illnesses covered and their definitions vary between insurers
Authorised and regulated by the Financial Conduct Authority. FCA No. 1034779
A diagnosis can change your finances overnight
A serious illness often means time off work, for you and sometimes for your partner.
Sick pay may be limited, and the costs of everyday life carry on. Critical illness cover gives you a lump sum to use as you need, at a time when you shouldn't have to worry about money.
You can't choose whether serious illness happens. You can decide whether your finances are ready for it.
Critical illness cover
- Pays a lump sum on diagnosis of a covered illness
- You decide how to use the money
- Usually pays out once for a full claim
Income protection
- Pays a monthly income after a waiting period
- Covers most illnesses and injuries that stop you working
- Can pay out more than once
What can happen if nothing is in place
Even with a good prognosis, the financial pressure can be considerable.
- Lost incomeYou may be unable to work for months, and sick pay may be limited or end.
- A partner's income affectedYour partner may need time off to care for you.
- Mortgage pressureRepayments continue while your income falls.
- Costs of recoveryTravel, home adaptations or extra help at home can add up.
- Savings used upMoney set aside for the future may go on day-to-day bills.
- Stress at the wrong timeFinancial worry can make recovery harder.
How critical illness cover works
You choose an amount and term, and the insurer pays if a diagnosis meets the policy definition.
Work out what's needed
We look at your mortgage, debts, income, sick pay and any cover you already have.
Compare definitions, not just prices
Insurers cover different illnesses and define them differently. The definitions decide whether a claim is paid, so they matter as much as the cost.
Apply and answer accurately
The insurer asks about your health, lifestyle and family history. Full and accurate answers matter, and some conditions may be excluded.
Choose how it's arranged
Cover can stand alone or be combined with life insurance. Many policies also include some cover for children.
If you're diagnosed
If the diagnosis meets the policy definition, the insurer pays the lump sum, subject to the policy terms. Some policies also make smaller payments for less severe conditions.
Who critical illness cover is suitable for
It's worth considering if a long recovery would put pressure on your finances.
- People with a mortgage or other significant debts
- Self-employed people and company directors with limited sick pay
- Families who rely on one or two incomes
- People without enough savings to cover several months off work
- Anyone who wants financial breathing space during treatment
- Parents who want some cover for their children
When it may not be the right answer
Critical illness cover doesn't cover every illness, and not every diagnosis qualifies: the condition must meet the policy definition. It usually pays once for a full claim. If your main concern is replacing income during any long absence from work, income protection may be more suitable, and many people have both.
Practical examples
These examples are illustrative only. The people are fictional, not clients, and any outcome would depend on underwriting, the policy terms and a valid claim.
- Illustrative example · Self-employed
Several months off work
A self-employed electrician has a heart attack and needs several months to recover.
Without cover: there's no sick pay, and the mortgage still needs paying.
With cover: if the diagnosis meets the policy definition, a lump sum could cover the mortgage and bills during recovery.
- Illustrative example · Couple
Time off for both partners
One partner is diagnosed with cancer, and the other reduces their hours to help.
The issue: household income falls just as costs rise.
With cover: if the claim is accepted, the lump sum could replace lost income for both.
- Illustrative example · Family
Children's cover
A family's policy includes children's critical illness cover, as many do.
The issue: a child's serious illness can mean a parent stops work for a time.
With cover: if the child's condition meets the definition, a payment could help the family manage, subject to the policy terms.
Common questions
Which illnesses are covered?
Policies usually cover major conditions such as specified cancers, heart attack and stroke, along with a list of others. The list and the definitions vary between insurers, which is why comparing definitions matters.
Does every diagnosis qualify?
No. A claim is paid only if the diagnosis meets the policy's definition, which may depend on severity. Some less advanced conditions may qualify for a smaller partial payment, depending on the policy.
Is the payout taxed?
Payouts from a personally owned critical illness policy are normally free of income tax under current rules.
Should I combine it with life insurance?
Combined cover usually costs less, but pays out only once, on either diagnosis or death. Separate policies cost more but can each pay out.
How is it different from income protection?
Critical illness cover pays a lump sum on diagnosis of a specified illness. Income protection pays a monthly income if any illness or injury stops you working, after a waiting period. They do different jobs.
Can I claim more than once?
Most policies pay out once for a full claim. Some pay partial amounts for less severe conditions and continue cover afterwards. I'll explain how any policy I recommend works.
What affects the cost?
Your age, health, family history, whether you smoke, the amount of cover, the term and how comprehensive the policy is.
Critical illness cover pays out only if a diagnosis meets the policy definition, and has no cash value. Cover is subject to underwriting, accurate disclosure and any exclusions. Tax treatment depends on individual circumstances and may change.
Talk it through with me
Every family's situation is different. A conversation is the quickest way to work out which cover, if any, makes sense for you, and what it would cost.
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