Critical Illness Cover Guides & Advice

Critical illness cover pays a lump sum if the insured person is diagnosed with a condition covered by the policy and meets the insurer's definition, subject to survival and other policy terms. It can help with mortgage payments, household costs, treatment-related expenses or adapting to changed circumstances. It does not cover every illness, and definitions vary between insurers.

Policies usually cover specified serious conditions such as certain cancers, heart attacks and strokes, but the precise conditions and severity definitions differ. Some policies include additional or partial payments for less severe conditions. A diagnosis alone may not be enough if the policy definition is not met. Compare wording and quality of cover, not just the number of listed conditions.

The amount depends on the financial impact you want to address. This could include repaying some or all of a mortgage, replacing income during recovery, funding home adaptations, childcare, private treatment or an emergency reserve. Existing savings, sick pay and income protection should be considered. The cover should remain affordable because a policy that lapses provides no protection.

Possibly. The insurer may offer standard terms, charge more, exclude certain conditions, postpone a decision or decline cover depending on medical history and other risk factors. Different insurers can reach different outcomes. Full and accurate disclosure is essential because missing or incorrect information can affect a future claim.

Critical illness cover normally pays a lump sum after diagnosis of a specified condition meeting the policy definition. Income protection can pay a regular benefit if illness or injury prevents you working, regardless of whether the condition appears on a fixed list, subject to the incapacity definition. The products address different needs and can complement each other.

Some adult policies include optional or automatic cover for children, but the benefit levels, conditions, age limits and exclusions vary. Children's cover may pay a smaller amount and should not be assumed to match the adult policy. Review the policy wording carefully and consider the practical financial impact if a child became seriously ill.

Insurers only pay when the medical evidence satisfies the policy definition in force. Two policies may both list the same condition but define severity, treatment or diagnostic evidence differently. Additional-condition payments, children's cover and claim support also vary. Assessing the quality of definitions is more useful than selecting solely by premium or condition count.

Older policies may have narrower definitions, but they may also contain valuable terms or reflect your health when cover began. A replacement requires new underwriting and may be more expensive, excluded or unavailable. Never cancel existing cover until a full comparison has been completed and any new policy is accepted and active. Keeping or supplementing the old policy may be more appropriate.