A Guide to Critical Illness Cover

In this guide, we’ll explain how critical illness cover works in the UK, how it compares to other types of protection like life insurance and income protection, and where to find the most competitive quotes to ensure you’re getting the right cover at the best price.

What is critical illness cover?

Critical illness cover (CIC) is a type of insurance that pays out a tax-free lump sum if you're diagnosed with a serious medical condition listed in your policy. This payout can provide a vital financial buffer—helping you to cover your mortgage, fund medical treatment, or offer your family added financial security during a difficult time.

How Does It Work?

When you take out a critical illness policy, you’ll choose the level of cover—the amount you’d like to receive if you make a claim—and agree to pay monthly premiums to keep the policy active. Generally, policies with broader cover and higher payouts come at a higher monthly cost.

If you're diagnosed with a specified condition—such as cancer, a heart attack, or a stroke—you can submit a claim. If your claim is approved, the insurer will pay out the agreed one-off lump sum, which you can use however you choose.

A few key points to note:

• Most policies include a “survival period”, usually around 10 to 14 days, meaning you must survive for this time after diagnosis for the policy to pay out.

• Once a successful claim is made, the policy typically ends automatically.

Critical illness cover offers peace of mind and practical financial support at one of life’s most challenging moments—making it an important consideration in your wider protection plan.

What does critical illness insurance cover?

Each insurance provider will have their own lists of covered conditions, but typically, here are the most common conditions critical illness cover in the UK provides protection for:

• Cancer (usually depends on the type and severity)

• Heart attack, cardiac arrest, and stroke

• Parkinson’s and multiple sclerosis

• Blindness and deafness

• Dementia

• Kidney and liver failure (organ failure or transplant)

• Loss of limbs

• Motor neurone disease

• Severe burns

• Traumatic brain injury

However, the exact conditions covered will vary across insurers and levels of cover. It’s always crucial to familiarise yourself with the policy notes because, even if a broad condition is covered (cancer, for example), it may not cover certain diagnoses.

Types of policies available

There are several types of critical illness cover available, each tailored to different needs and financial situations. Here’s a quick overview of the most common options:

Standalone Critical Illness Cover

This type of policy provides cover only for critical illness, without any life insurance component. It can be a cost-effective way to protect against serious health conditions, especially if you're primarily concerned about the financial impact of illness rather than death.

• Offers flexibility in how much cover you take out

• You’re not covered if you pass away unless life insurance is arranged separately

• Affordable and ideal for targeted protection

Combined Life and Critical Illness Cover

A combined policy covers both death and serious illness. You’ll receive a single payout—either if you're diagnosed with a critical illness or if you pass away during the policy term (whichever comes first).

• Often more cost-effective than taking out two separate policies

• Can be included in whole-of-life or decreasing term life insurance, especially if you're protecting a mortgage

• Provides a well-rounded protection package for you and your family

Group Critical Illness Cover

Offered by some employers as a workplace benefit, this policy provides cover for serious illnesses among staff members. It’s often free or subsidised by the employer, making it a great bonus if included in your employment package.

• Convenient and low-cost (or no cost) for employees

• May offer less personalised cover, with limited options for tailoring to your personal circumstances

• Payouts might be taxed differently compared to personal policies, depending on how the scheme is structured

How your application gets assessed

When applying for critical illness cover, insurers assess a range of factors to determine your eligibility and how much you’ll pay in monthly premiums. Understanding these key areas can help you make informed decisions and tailor your policy to your needs:

Age and Health

Your age, general health, height, and weight play a major role.

• Younger, healthier applicants typically enjoy lower premiums

• Insurers may also assess your family medical history to understand the likelihood of hereditary conditions

Lifestyle

Insurers will ask about:

• Exercise habits, alcohol consumption, and smoking status

• High-risk hobbies (e.g. rock climbing, scuba diving)

• Military or hazardous occupations, which can increase risk and cost

Level of Cover

The more you want your policy to pay out, the higher the premium.

• Some people base cover on outstanding debts, like a mortgage

• Others multiply their annual salary by 5–10 years to estimate the needed amountCovered Conditions

• Basic policies cover fewer illnesses and are generally more affordable

• Comprehensive policies cover a wider range of conditions, including less common ones, but will cost more

Policy Length

You can usually choose cover for a fixed term:

• 10, 20, or 30 years are common

• Some policies can last until a specified age or align with your life insurance term

Occupation

Your job matters—especially if it involves physical risk.

• Higher-risk roles (e.g. construction at heights, offshore work, armed forces, emergency services) may lead to higher premiums or restricted cover

Premium Structure

• Guaranteed premiums stay fixed for the life of the policy, offering stability

• Reviewable premiums can change over time based on risk reassessment, often starting lower but increasing later

Children’s Cover

Some policies include a limited benefit for children’s critical illness by default, while others offer it as a paid add-on.

• It can be a useful way to extend protection to your family, but it’s important to check whether it's included or optional

Taking the time to assess these factors—and working with a specialist if needed—can help you get the right balance of affordability and protection in your critical illness cover.

Is critical illness cover worth it?

Whether critical illness cover is the right choice depends on your financial circumstances and any existing insurance you already have. Below is a breakdown of how it compares to other popular types of cover:

Critical Illness Cover vs Income Protection Insurance

• Critical Illness Cover
  Pays a one-off lump sum if you're diagnosed with a serious condition listed in your policy (e.g. cancer, heart attack, stroke).
  You can use the payout for anything—paying off debts, adapting your home, or covering living expenses.
  Once a successful claim is made, the policy usually ends.

• Income Protection Insurance
  Provides a regular monthly income (typically up to 70% of your salary) if you’re unable to work due to illness or injury.
  Can pay out until retirement or for a fixed benefit period.
  Policies often allow for multiple claims, and the policy may remain in force after a payout.

Critical Illness Cover vs Accident Insurance

• Accident Insurance
  Pays a lump sum for physical injuries sustained in an accident (e.g. broken bones, burns, loss of limb).
  It does not cover illnesses or medical diagnoses.

• Critical Illness Cover
  Only pays out for medical diagnoses such as cancer or heart disease.
  Injuries are not covered unless they result in a listed long-term condition (e.g. paralysis, blindness).

Critical Illness Cover vs Terminal Illness Cover

• Terminal Illness Cover
  Pays out if you’re diagnosed with a terminal condition expected to lead to death within 12 months.
  Often included as a standard benefit in life insurance policies and allows early access to your cover.

• Critical Illness Cover
  Pays out if you're diagnosed with a serious illness, even if it’s not terminal.
  You could receive treatment and recover while benefiting from the payout.

Critical Illness Cover vs Life Insurance

• Life Insurance
  Pays a lump sum upon death, with the money going to your beneficiaries (e.g. partner, children).
  Provides protection for your family after you’re gone.

• Critical Illness Cover
  Pays a lump sum while you’re still alive if you're diagnosed with a specified illness.
  Offers financial support during treatment and recovery.

How much does it cost?

The cost of critical illness cover can vary widely based on the insurance provider, the level of cover you need, and your personal circumstances.

To give you an idea about the premiums, here are some average costs for combined life insurance with critical illness cover included, lasting 30 years for a non-smoker, and paying out £100k:

Best UK critical illness cover providers

The best insurance provider to use for critical illness cover will depend on your situation and the level of protection you need, but here are some examples of popular UK providers:

• NatWest: Life insurance and critical illness cover from NatWest is actually provided by Aviva. With NatWest, you can opt for the ‘Critical 3 with Life Insurance’ product, which is essentially critical illness cover and is available for customers between 17 and 75 years of age.

• Vitality: With Vitality’s critical illness cover, which it calls ‘serious illness cover’, you can claim more than once and you’re able to extend your plan to include later-life conditions like dementia. Vitality covers up to 174 conditions, which it claims is more than any other insurer.

• Legal & General: When you take out critical illness cover with Legal & General, you’ll automatically get children’s critical illness cover included. The survival period for policies is 14 days, however, some types of cancer are not included, and you need to have permanent symptoms to make a claim for some illnesses.

If you want to get a better idea of the best UK critical illness providers based on your needs and circumstances, it’s worth having a brief discussion with an insurance adviser to see what your options are.

Frequently Asked Questions