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Critical Illness Cover Explained

What is Critical Illness Cover

Critical Illness Cover Explained

Critical Illness Cover can pay a tax-free lump sum if you’re diagnosed with a serious illness covered by the policy. It’s designed to give you financial breathing space at a time when work, income, and day-to-day costs can become uncertain.

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What is Critical Illness Cover?

Critical Illness Cover is a type of insurance that pays a tax-free lump sum if you are diagnosed with a specific serious illness during the policy term (as defined by the insurer).

It’s different from life insurance because it can pay out while you’re alive, at the point of diagnosis, provided the condition meets the policy definition.

You can use the payout however you like — for example, to reduce your mortgage, cover bills, fund time off work, or pay for treatment and recovery costs.

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Richard Aston, Mortgage Adviser

Written by Richard Aston · Mortgage Adviser

Published: 21st Nov 2025 · 1 min read

What does Critical Illness Cover usually include?

What’s covered depends on the insurer and the level of cover chosen, but many UK policies include conditions such as:

  • Cancer (subject to the insurer’s definition and severity requirements)
  • Heart attack
  • Stroke
  • Multiple sclerosis
  • Parkinson’s disease
  • Major organ failure or organ transplant
  • Coronary artery bypass surgery
  • Loss of limbs or loss of sight (as defined)
  • Permanent disability (as defined by the policy)

Some policies may also offer partial payouts for less severe conditions or early-stage diagnoses, but this varies by provider.

Important: the wording matters. Critical Illness claims are assessed against the insurer’s definitions, not just the condition name. This is why it’s worth comparing policies carefully before choosing one.