What is Critical Illness Insurance?
Critical illness insurance pays a tax-free lump sum if you're diagnosed with a serious illness like cancer, heart attack, or stroke. You receive the money while alive – you don't have to die to claim.
Critical illness insurance is a type of protection policy that pays out a one-off tax-free sum if you're diagnosed with a covered serious illness. Unlike life insurance which pays when you die, critical illness pays while you're still alive, giving you money when you need it most – to cover treatment costs, pay off your mortgage, or take time off work to recover.
Cover is subject to policy terms. Pre-existing conditions typically excluded.
Key Points
- 1Pays tax-free lump sum on diagnosis
- 2Covers cancer, heart attack, stroke, and 40+ conditions
- 3You receive money while alive
- 4Use the payout however you choose
- 5Can be combined with life insurance
- 692% of claims are paid successfully
Eligibility Criteria
- UK resident aged 18-70
- No existing diagnosis of covered conditions
- Health declaration required
- Pre-existing conditions may be excluded
Typical Timeframe
Policies can start immediately after application. Claims typically paid within 4-8 weeks of diagnosis confirmation.
Next Steps
- 1Calculate how much cover you need
- 2Compare providers and conditions covered
- 3Check policy definitions carefully
- 4Get expert advice on your options
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Related Questions
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ProtectionContent reviewed: January 2026