Personal Insurance

Critical illness cover

February 6, 2024
Information published was correct at the time of writing

Your financial safety net

Critical illness insurance provides a payout upon diagnosis of specific medical conditions or injuries stipulated in the policy.

Critical illness cover is a financial safety net when you’re diagnosed with a specified condition included in the policy. This tax-free, lump sum payment can help cover treatment costs, your mortgage or rent, or even modifications to your home, like wheelchair accessibility. Let’s delve into how it functions, its necessity and considerations for purchasing.


Critical illness insurance provides a payout upon diagnosis of specific medical conditions or injuries stipulated in the policy. This one-time payout marks the end of the policy. The range of covered conditions varies greatly among different insurers, with the most comprehensive policies covering 50 or more conditions while others offer more limited coverage.

Covered critical illnesses may include stroke, heart attack, certain types and stages of cancer, conditions such as multiple sclerosis, major organ transplants, Parkinson’s disease, Alzheimer’s disease, traumatic head injuries and more. Most policies also acknowledge permanent disabilities resulting from injury or illness.


Some policies offer smaller payouts for less severe conditions or if your child is diagnosed with a specified condition. However, not all conditions qualify for coverage. Commonly excluded are noninvasive cancers, hypertension and injuries like broken bones. Additionally, most policies specify the severity of the condition required to qualify for a payout.


If serious illness prevents you from working, you might expect continued income from your employer or reliance on benefit payments. However, employees typically transition to Statutory Sick Pay within six months, and state benefits may not adequately replace your income.


Consider obtaining critical illness cover if your family heavily relies on your income, you lack sufficient savings to support you during a serious illness or disability, or your employee benefits package doesn’t cover long-term sickness absence.

On the other hand, critical illness cover may not be necessary if you have enough savings to handle ongoing expenses, lack financial commitments or dependents, have a partner who can cover living costs and shared commitments, or already have some coverage through your employer’s benefits scheme.

Don’t forget, our professional friendly advisors are on hand to support you and can help you explore all of your options.

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