Is Critical Illness Insurance Worth It?

Critical illness insurance can be worth it if you have a mortgage, dependents, or would struggle financially if seriously ill. The average claim pays £67,000 tax-free, and 92% of claims are successful. However, it's expensive and has strict definitions. Consider your existing provisions, savings, and employer benefits before deciding. Cancer, heart attack, and stroke account for over 90% of claims.

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Is critical illness insurance worth it?

It's worth it if you have a mortgage, dependents, or would struggle financially if seriously ill. The average claim pays £67,000 - enough to clear debts and fund recovery. Consider your existing provisions first.

What are the pros of critical illness?

Pros: tax-free lump sum, clear mortgage/debts, cover care costs, make lifestyle adaptations, peace of mind. 92% of claims are paid and cancer alone accounts for 65% of successful claims.

What are the cons of critical illness?

Cons: cost (premiums can be significant), strict condition definitions, pre-existing exclusions, early-stage conditions may not pay, no return if you don't claim.

Who should get critical illness insurance?

Consider it if you have: a mortgage, financial dependents, limited sick pay, no substantial savings, or family history of serious illness. Especially valuable for main income earners and self-employed.

Quick Answer

Should I Get Critical Illness Insurance?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Worth it if you have mortgage, dependents, or limited savings. Average payout £67,000. 92% claims paid. But expensive with strict definitions. Consider existing provisions first.

Critical illness insurance provides a tax-free lump sum if you're diagnosed with a serious condition. Whether it's worth it depends on your circumstances. If a serious illness would cause financial hardship - through lost income, mortgage arrears, or care costs - it can provide vital protection.

Key Points

1Average claim payout: £67,000
292% of claims paid successfully
365% of claims are for cancer
4Tax-free lump sum payment
5Can clear mortgage and debts
6Strict definitions may limit claims

Eligibility Criteria

Recommended if you have a mortgage
Important for main household earner
Valuable if limited sick pay
Consider if family history of illness
Less critical if substantial savings

Typical Timeframe

Policies start immediately but have a waiting period (usually 14-90 days). Claims typically pay within 4-8 weeks of diagnosis.

Next Steps

1Assess your financial vulnerability
2Check employer death in service/sick pay
3Calculate how much cover you'd need
4Compare standalone vs combined with life
5Get quotes and speak to adviser

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Is It Worth It? Key Facts

Should I Get Critical Illness Insurance?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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