What is critical illness cover?
Critical illness cover (CIC) is an insurance policy that pays a one-off, tax-free lump sum if you're diagnosed with one of a specified list of serious medical conditions. Unlike income protection (which pays monthly), critical illness cover pays a single cash sum that you can use however you choose.
What conditions are covered?
Most UK policies cover between 30 and 50 conditions. The core conditions covered by virtually all policies include:
- Cancer (certain types and stages)
- Heart attack
- Stroke
- Multiple sclerosis
- Organ failure requiring transplant
- Total permanent disability
More comprehensive policies also cover conditions like Parkinson's disease, Alzheimer's, deafness, blindness, and some children's conditions.
How much does it pay out?
The payout amount is the sum assured you chose when you took out the policy. Most people choose £50,000–£250,000, based on their mortgage, income, and financial obligations. The money is paid as a lump sum directly to you (or your beneficiaries).
What can I use the payout for?
There are no restrictions — you can use the money for anything:
- Repaying your mortgage or debts
- Funding private medical treatment
- Adapting your home for a disability
- Replacing lost income while you recover
- Paying for childcare or family support
How much does critical illness cover cost?
A healthy non-smoking 30-year-old can get £100,000 of cover for around £15–£30 per month. Premiums increase with age, smoking status, and health history.
Is critical illness cover the same as life insurance?
No — life insurance pays out when you die; critical illness cover pays out when you're diagnosed with a serious illness (while you're alive). Many people hold both. Combined policies (life + CIC) are also available.
Critical illness cover vs income protection
Critical illness cover pays a one-off lump sum. Income protection pays a monthly income for as long as you can't work. Both serve different purposes and many people benefit from having both.
Frequently Asked Questions
Yes — but only for specified types and stages. Early-stage or non-invasive cancers may not qualify. Always check the policy wording carefully.
Yes, but that condition may be excluded from cover. The insurer will assess your health history at application and decide whether to exclude specific conditions.
They cover different events. Life insurance pays out when you die; critical illness cover pays out while you're alive. Many serious illnesses don't result in death — so they're complementary, not interchangeable.