Critical illness insurance

An insurance policy that is usually paid out in the form of a lump sum if you are diagnosed with a chronic (i.e. long term) or life threatening illness or if, for any reason, you become permanently disabled ie Critical illness. Policies vary in terms of the conditions covered but, typically these would include: heart attack, stroke, cancer, multiple sclerosis, motor-neurone disease.

It's important to bear in mind that the benefit is paid out on diagnosis. If you subsequently recover, so much the better - there's no "claw back"!

Get a competitive critical illness quotation today

Being diagnosed with a critical illness the odds are higher than probably any of us would care to acknowledge.
Each year almost 220,000 people are diagnosed as new cancer registrations, which would qualify as a claim under the Association of British Insurers standard illness definitions applying to Critical Illness policies.*

Up to age 65, a man has a 1 in 5 chance and a woman has a 1 in 6 chance of suffering a critical illness. *

700,000 people this year will develop cancer, heart disease or suffer a stroke. *

1 in 4 of the population will suffer a critical illness before the age 65. *

We are 5 times more likely to suffer from a serious illness than die before reaching age 65. **
Sources: *ERC Frankona 2000/**Swiss RE 2000

Thanks to the skill of doctors and continuous advances in medical research and technology, many people now survive heart attacks, strokes and even cancer. The good news is that people are more likely to survive such serious illness and live for a considerable time than ever before. The not such good news is inevitably concerned with the financial aspects of being in this position. If you have life cover to protect your loved ones it won't benefit you as any money will only be paid on death.
Most people who are diagnosed with a serious illness will need to re-assess many aspects of their lives. They may not be able to work for a period of time and feel that, assuming they return to work, they would like to return to a less stressful environment. It is highly likely that income will suffer in the short term, and returning to any kind of work may not be possible. It may be that modifications need to be made to your home because of the nature of your illness, or a partner may need to give up their job in order to look after you.

Whatever the nature and implications of your illness, what would really make a difference is a policy which helped you at the time when you most need it.

Critical Illness Insurance Cover

This provides a lump sum on the initial diagnosis of a serious medical problem

Available on a specified term and a whole of life basis

Can be provided with life assurance cover in the same policy

Typically, the majority of claims arise from a few illnesses like cancer, heart attacks and strokes
Ideal way of paying off a mortgage or loans in the event of serious illness, meaning there is one less thing to worry about
Policies do vary but all pay if you suffer a heart attack, cancer, a stroke or kidney failure or need a coronary bypass or transplant. Critical Illness can be set up as a stand-alone policy or can be incorporated with your life cover policy for an extra charge.

Definitions of Death OR Earlier Critical Illness / Death AND Critical Illness
Death OR Earlier refers to the benefits of a policy paying out if the claimant has either OR condition. This may sound like common sense but it is important to appreciate is that once a payment has been made then NO further cover is in place. It is worth pointing out that if a claim is made for the Critical Illness element of the insurance then it is highly UNLIKELY that the claimant will be able to obtain future life cover.
Death AND Critical Illness refers to the cover being provided for both elements. It is effectively a double insurance. After a claim has been made for the Critical Illness cover then the insurance remains in place to provide death cover (Though no further Critical Illness cover). Cost of this cover is marginally more expensive than Death or Earlier.

Great British Finance Limited are authorised and regulated by the Financial Services Authority (FSA). The FSA does not regulate some forms of Mortgage, Inheritance Tax Planning, Credit Cards, Personal Loans, Deposit Accounts & Insurance. If you are submitting an online request, we would advise to read our KeyFacts statement, links are at the top and bottom of this page.

Critical illness insurance cover

Critical illness insurance