Critical Illness

What is Critical Illness Cover?

Critical illness cover is a type of insurance that pays out a lump sum if the policyholder suffers from certain severe medical conditions.

This money can help pay for medical expenses and other costs associated with long-term illnesses.

It can also provide financial security if you cannot work due to the condition, helping you maintain your lifestyle while your medical treatment is ongoing.

Benefit paid: Lump sum

Critical illness insurance provides you with a tax free cash sum in the event you are diagnosed with one of a list of common defined critical illnesses. The cash sum you receive can be used however you like, but is designed to take the financial burden off you during a difficult period in your life. Critical illness, like life insurance, can be a fixed lump sum or can decrease in line with your mortgage.

Benefits can include: Free critical illness cover for your children.

Different Types of Critical Illness Cover

There are different types of critical illness cover you can choose from. These include:

Life insurance critical illness cover :

combines critical illness cover with a life insurance policy, meaning you benefit from both types of cover.

Standalone critical illness cover:

This type of critical illness cover only covers critical illnesses and does not include any other forms of protection such as life insurance or income protection.

Decreasing critical illness cover:

This type of critical illness cover pays out a lump sum if the policyholder is diagnosed with certain critical illnesses, but the amount of money paid decreases over time in line with, say, a mortgage.