Critical illness insurance cover is a long-term insurance policy, which covers a range of serious illnesses. If you get one of the stated illnesses, a critical illness insurance policy will pay out a tax-free, one-off payment. This can help pay your mortgage, rent, debts, or alterations to your home, such as wheelchair access, should you need it.

Every year, 1 million workers in the UK unexpectedly find themselves unable to work because of injury or illness, according to the ABI (2015). Examples of critical illnesses that might be covered include a stroke, heart attack, certain types and stages of cancer and conditions such as multiple sclerosis. Most policies will also cover permanent disabilities because of injury or illness.

Some policies will make a smaller payment for less severe conditions, or if one of your children has one of the specified conditions. Critical illness insurance cover only pays out once and then the policy ends.

What isn’t covered?

Some serious illnesses, such as some cancers and conditions not listed in the policy may not be covered. 
You probably won’t be covered for health problems you knew you had before you took out the insurance, and critical illness insurance doesn’t pay out if you die. 

We would advise that you always check the policy details to know what will be covered.

Do you need the cover?

State benefits might not be enough to replace your income if something goes wrong and you can’t work because of long-term sickness or disability. If you’re eligible, Employment and Support Allowance ranges from around £70 to just over £100 a week, depending on your circumstances and the seriousness of your illness or disability.

You should consider critical illness cover if you don’t have enough savings to tide you over if you were to become seriously ill or disabled and/or you don’t have an employee benefits package to cover a longer time off work due to sickness.

If you would like to find out more about this insurance, or want to discuss the issues raised, please contact your Dentons Wealth Independent Financial Adviser.


Although every effort has been made to ensure that the information provided in this article is accurate and correct, the information provided does not constitute any form of financial advice. We recommend that you take financial advice before making any financial decisions.