Critical Illness Cover
A tax-free lump sum paid while you are alive if you are diagnosed with a serious illness like cancer, a heart attack or a stroke, so you can focus on recovery, not money.
- Whole-of-market cover
- Free, no-obligation advice
- Real claims support
Critical illness cover is built for the moment life takes an unexpected turn. If you are diagnosed with one of the serious conditions listed in your policy, and you meet the definition, it pays a single tax-free lump sum while you are still alive. Clear the mortgage, pay for treatment, adapt your home or simply take the pressure off while you recover. As an independent, FCA-regulated intermediary, we search the whole market and compare exactly what each insurer covers.
Why people choose critical illness cover
A tax-free lump sum, while you are alive
Paid on diagnosis, when serious illness can hit your income hardest. The money lands when you need it most, not after you are gone.
Spend it however you need
Clear the mortgage, fund treatment, pay for care or buy yourself time off work. The payout is yours, with no strings attached.
Fills the sick-pay gap
Statutory sick pay rarely covers the bills. A lump sum helps bridge the shortfall if illness stops you earning.
Protect the children too
Children’s cover can often be added, sometimes at no extra cost alongside life cover, giving the whole family a layer of protection.
Most claims are paid
Across the industry the large majority of critical illness claims are paid, typically more than 90 percent of valid claims.
Independent and fee-free
We compare conditions and definitions across the whole market, not one insurer’s shelf, so the cover actually fits you.
How a claim works
Your diagnosis meets the policy definition
You are diagnosed with one of the conditions listed in your policy, and the diagnosis meets the specific definition the insurer sets out in the policy wording.
You pass a short survival period
Most policies ask you to survive for a short period after diagnosis before a claim is paid, commonly 10 to 14 days, though this varies by insurer.
You receive a single tax-free lump sum
The insurer pays out one tax-free lump sum, up to the amount of cover you chose. The money is yours to use however you need.
The policy then usually ends
Critical illness cover is normally a single-payout plan, so once a full claim is paid the cover generally ends. Some plans offer partial payments that do not end the policy.
What it typically covers
Every insurer publishes its own list of conditions and definitions, so cover varies. The conditions below are commonly included on comprehensive policies, but always check the policy wording for the exact definitions, caps and any partial payment terms.
Cancer
Most policies cover cancer of a defined severity, with smaller partial payments often available for some early-stage or less advanced cancers.
Heart attack
A heart attack that meets the policy definition is one of the core conditions on almost every critical illness plan.
Stroke
A stroke resulting in lasting symptoms, as set out in the policy wording, is typically covered.
Named neurological conditions
Multiple sclerosis, Parkinson’s disease and motor neurone disease are commonly included where the policy definition is met.
Major organ transplant or failure
Many policies cover a major organ transplant, or kidney failure and similar conditions, subject to the insurer’s definitions.
Children’s critical illness
Cover for your children can often be added, sometimes free alongside life cover. Terms, age limits and the payout amount vary by insurer.
How many conditions are covered?
Cover ranges widely. Comprehensive plans list anywhere from around 40 to over 80 conditions. More conditions and clearer definitions usually cost a little more, but the difference is rarely as large as people expect. We compare the lists so you know exactly what you are paying for.
How it sits alongside life insurance
Life insurance and critical illness cover protect against different events, which is why so many people hold both. Critical illness cover is often bought alongside life insurance, and how you combine them changes both the price and the protection.
How it differs from life insurance
Life insurance pays out when you die. Critical illness cover pays out while you are alive, if you are diagnosed with a serious condition that meets the policy definition. The two cover different risks, which is exactly why many people consider both.
Combining it with life cover
You can choose ‘life or critical illness’, which is cheaper and pays once on whichever happens first, or ‘life and critical illness’, which can pay out on both as separate claims. We will explain the trade-offs so you can pick what suits your budget.
| Life or Critical Illness | Life and Critical Illness | |
|---|---|---|
| Pays out | Once, on the first event | Separately on each event |
| Cost | Lower | Higher |
| Best for | Tighter budgets | Maximum protection |
Want to know what you would actually be covered for?
Get free, no-obligation advice from an independent, FCA-regulated adviser. We compare the conditions, definitions and prices across the whole market and explain it in plain English.
Independent advice.
Critical illness cover questions
What is the difference between critical illness cover and life insurance, and do I need both?
Life insurance pays out when you die, helping those you leave behind. Critical illness cover pays a tax-free lump sum while you are alive if you are diagnosed with a serious condition that meets the policy definition. They cover different risks, so many people hold both. Whether you need both depends on your circumstances, and we will help you weigh it up.
What conditions are covered, and what is excluded?
Comprehensive policies typically cover anywhere from around 40 to over 80 conditions, including cancer, heart attack and stroke. Each insurer sets its own list and definitions, so cover varies. Common exclusions include conditions that do not meet the policy definition, certain pre-existing or known conditions, and anything you did not disclose. Always check the policy wording for the detail.
How much cover do I need?
There is no single right answer. Many people set the amount against their mortgage, other debts and the cost of taking time off work or paying for care. We will talk through your outgoings and goals to help you choose a sensible level of cover for your budget.
What is the survival period?
Most policies ask you to survive for a short period after diagnosis before a claim is paid, commonly 10 to 14 days. The exact period is set out in the policy wording and varies between insurers.
Can I claim more than once?
Critical illness cover is usually a single-payout plan, so once a full claim is paid the policy generally ends. Some plans include partial payments for less severe conditions that do not end the cover, and a few offer additional or child-related claims. We will explain how each plan handles this.
Is the payout taxed?
A critical illness payout is normally paid as a tax-free lump sum. Tax treatment depends on your individual circumstances and may change in the future, so this is general information rather than tax advice.
How does critical illness cover compare with income protection?
Critical illness cover pays a single lump sum on diagnosis of a listed serious condition. Income protection pays a regular monthly income if illness or injury stops you working, until you recover, retire or the policy ends. They suit different needs and some people hold both. We can compare them for your situation.
What happens if my condition is not on the list?
Critical illness cover only pays out for the conditions named in your policy, and only when the diagnosis meets the insurer’s definition. If a condition is not listed, or does not meet the definition, no payout is made. This is exactly why we compare the condition lists and definitions across the market before recommending a plan.
Let us talk through your options
Your first consultation is free and there is no obligation.
Albion Financial Advice provides regulated mortgage and insurance advice where applicable. Your home may be repossessed if you do not keep up repayments on your mortgage. Wills, estate planning and some forms of business and buy-to-let insurance are not regulated by the Financial Conduct Authority. Information on this page is general only and does not constitute financial advice.