Critical Illness Cover

If you're diagnosed with a serious illness, the last thing you should be worrying about is money. Critical illness cover pays a tax-free lump sum on diagnosis, giving you the financial freedom to focus entirely on your recovery.

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How critical illness cover works

Critical illness insurance pays a one-off, tax-free lump sum if you're diagnosed with a condition covered by your policy. The money is yours to use as you wish — there are no restrictions on how you spend it.

1

Diagnosis

You're diagnosed with a condition covered by your policy (e.g., cancer, heart attack, stroke).

2

Claim

You submit a claim to the insurer with medical evidence. Claims are typically processed within a few weeks.

3

Payout

You receive a tax-free lump sum. Use it for mortgage payments, medical costs, lifestyle changes, or anything else you need.

Supporting your recovery

A critical illness can change everything — your ability to work, your lifestyle, and your family's financial position. The lump sum payment gives you the resources to manage these changes:

  • Clear your mortgage so your family has a secure home regardless of what happens
  • Take time off work without financial pressure to recover properly
  • Fund private medical treatment or specialist rehabilitation
  • Adapt your home if needed (ground-floor bedroom, accessible bathroom)
  • Replace lost income during a potentially long recovery period

Frequently asked questions

What conditions are covered?
Most policies cover a core set of conditions including cancer, heart attack, stroke, and multiple sclerosis. Many also cover a wider range of conditions — some policies include 40-60+ conditions. The specific conditions and definitions vary between insurers, which is why independent advice matters.
How is critical illness different from life insurance?
Life insurance pays out when you die. Critical illness pays out when you're diagnosed with a covered condition — while you're alive. This means you receive the money when you need it most, allowing you to focus on recovery rather than worrying about finances.
Can I combine critical illness with life insurance?
Yes. Many people take out a combined policy that pays out on either death or diagnosis of a critical illness — whichever happens first. This is usually more affordable than having two separate policies, though the total cover amount only pays once.
Is the payout taxable?
No. The lump sum from a critical illness policy is completely tax-free. You can use it however you choose — paying off your mortgage, covering medical costs, adapting your home, taking time off work, or anything else.
What if I have a pre-existing condition?
Pre-existing conditions may be excluded or may result in modified terms. However, many conditions can still be covered. We search the whole market to find insurers most likely to offer the best terms for your specific health history.

Protect yourself against the unexpected

Book a free consultation and we'll find the right critical illness cover for your situation.

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