Cancer and CIC: The Basics
Most UK critical illness policies cover cancer as a full-payment condition – meaning a successful claim pays 100% of the sum assured. However, not all cancers qualify under all policies.
What Types of Cancer Are Covered?
Most policies cover:
- Invasive cancers of any organ or tissue where surgery, radiotherapy, or chemotherapy is required
- Blood cancers (leukaemia, lymphoma, myeloma)
- Brain tumours (malignant)
Common exclusions: Some early-stage or low-grade cancers may only attract a partial (25%) payment rather than the full sum. These include some early-stage prostate cancers, early-stage skin cancers, and carcinoma-in-situ (pre-invasive) cancers.
The Rise of Partial Payments
Modern policies use severity-based payouts for cancer. For example:
| Cancer Stage | Typical Payout |
|---|---|
| Early-stage, localised cancer | 25% of sum assured (max £25,000 at some providers) |
| Invasive cancer requiring treatment | 100% of sum assured |
| Terminal cancer | 100% via terminal illness benefit (life insurance) |
Why Definitions Matter
The ABI’s model definition for cancer is broad, but insurers can add exclusions. Cheaper policies often have narrower definitions. Checking the specific wording for cancer definitions before you buy is essential.
How to Ensure You Are Covered
- Use an independent adviser who can compare policy definitions
- Ask specifically about early-stage cancer and partial payment conditions
- Choose a policy with the ABI’s enhanced cancer definitions
- Consider policies with 50+ full-payment conditions and 70+ partial conditions
Frequently Asked Questions
Most invasive cancers: full payment. Some early-stage: partial (25%). Check definitions.
Cancer – over 60% of all UK CIC claims.