Critical Illness Cover

Critical or serious illness cover can help to provide vital financial security as it pays out a tax-free cash lump sum, usually amounting to several thousands of pounds, if you are diagnosed as having one of the illnesses specified in the policy. This support removes the financial strains and worries that are so often a consequence of an unexpected life changing event, allowing individuals and their family to focus on coping with the other challenges that may be involved.

Critical illness policies are often combined with general life insurance and cover can be for a single person or on a ‘joint life’ basis, i.e. for two people. Many critical illness policies now offer cover for children as part of their insurance, meaning that should your children fall critically ill they will be covered under your policy, and you'll receive a lump sum pay-out. It may give you peace of mind to know that both you and your children will be financially covered should the worst happen.

How much Critical illness cover do I need?

As always, this depends on your individual circumstances and goals. For example, if you are taking out the policy to ensure your home is protected, you need to have a policy big enough to pay off your mortgage. However, the tax-free payout can be used any way you like and could be used to cover your living expenses, financial commitments or to help with the extra costs that often result from serious illness – for example

  • any medical treatment you might need
  • adjustments to your home
  • specialist equipment
  • care services
  • income top up

Will the state take care of me?

If you can’t work, or work reduced hours, because of sickness or disability – financial support is available. You might be able to claim Statutory Sick Pay (SSP), paid by your employer. If this has run out, or you can’t claim it, you might be able to claim Employment and Support Allowance (ESA), Personal Independence Payment (PIP), Universal Credit, and other benefits.

The exact amount of benefit you may be entitled to will be dependant  on your circumstances (i.e. whether or not you have children, a certain level of savings, or if your partner works).

If you are a single person with no dependants, critical illness cover could be more valuable to you than life insurance, because it will pay out a lump sum if you become ill rather than paying out to those who rely on your income to survive. It would be worth considering how your family would cope if you became ill and were unable to work, and whether or not they would have the means to care for you.

Our fully qualified advisers will be delighted to talk to you and take the time to ascertain your needs and financial circumstances before advising on the best product from our carefully selected panel of leading insurance providers. We will also be able to recommend the right level of benefits to ensure that your financial commitments are fully covered.

As with all insurance policies, conditions and exclusions will apply.