A lump sum if you’re seriously ill
Critical illness cover pays out a tax-free lump sum if you’re diagnosed with a serious illness like cancer, heart attack, or stroke. Use it however you need—no restrictions.
How it works
Diagnosed with a covered condition like cancer, heart attack, or stroke
What is critical illness cover?
Critical illness cover pays out a tax-free lump sum if you’re diagnosed with a serious illness covered by your policy. Unlike life insurance, you don’t have to die to receive the money—you get it while you’re alive, when you need it most.
The payout is yours to use however you want. Pay off your mortgage, cover bills while you recover, fund private treatment, adapt your home, or take time off work without financial stress.
Most policies cover 40+ conditions including cancer, heart attack, stroke, multiple sclerosis, and organ failure. Some also cover less severe conditions with partial payouts.
Key difference from life insurance: Life insurance pays out when you die. Critical illness pays out when you’re diagnosed—giving you money when you can actually use it.
You can buy critical illness cover on its own, or combine it with life insurance for complete protection. Many people choose both.
Critical Illness vs Life Insurance
Different protection for different situations
Critical Illness
Life Insurance
💡 Worth considering together Combine both for protection whether you’re seriously ill or pass away
Conditions typically covered
Most policies cover 40+ serious conditions. Here are the most common claims.
Core conditions 100% payout
These serious conditions make up the majority of claims and pay out the full sum assured.
Cancer
Most types of cancer that require treatment (some early-stage cancers may have different terms)
Heart attack
Death of heart muscle due to inadequate blood supply, of specified severity
Stroke
Death of brain tissue with lasting symptoms, confirmed by imaging
Other serious conditions
Additional cover options
Definitions vary between insurers. Each insurer has their own specific definitions for covered conditions. Some are more generous than others. We compare policies to find cover that suits your situation — not just the lowest price.
How the money helps
A serious illness changes everything. A lump sum gives you options when you need them.
Clear your mortgage
Pay off your mortgage so you and your family don’t have to worry about keeping up payments while you recover.
Replace lost income
Cover your salary while you’re unable to work. Focus on getting better instead of worrying about bills.
Fund treatment options
Access private treatment, specialists, or therapies that might not be available on the NHS—or avoid long waiting times.
Adapt your home
Make changes to your home if you need them—wheelchair access, stairlift, wet room, or other modifications.
Pay for care
Hire help at home, pay for childcare, or get support so your partner doesn’t have to give up work to look after you.
Take time to recover
Step back from work without financial pressure. Spend time with family and focus entirely on your health.
How much cover do you need?
Think about what costs you’d need to cover if you couldn’t work for a year or more.
Common cover amounts
Here’s what people typically choose to cover:
What affects the price
Critical illness cover costs more than life insurance. Here’s why prices vary:
Your age
Younger = cheaper. Prices increase significantly with age.
Smoking
Smokers pay significantly more—often double.
Health & family history
Pre-existing conditions or family history may increase premiums.
Example monthly premiums (£100,000 cover, 25 years)
| Profile | From |
|---|---|
| Age 30, non-smoker, good health | £18/month |
| Age 35, non-smoker, good health | £26/month |
| Age 40, non-smoker, good health | £42/month |
| Age 40, smoker, good health | £78/month |
| Age 45, non-smoker, good health | £68/month |
Prices are illustrative only. Your actual quote depends on your specific circumstances. Combined life + critical illness policies often offer better value.
Critical illness questions
What’s the difference between critical illness cover and life insurance?
Life insurance pays out when you die. Critical illness pays out when you’re diagnosed with a serious covered condition—while you’re still alive. You can have both: life insurance protects your family if you pass away, while critical illness gives you money to use yourself if you become seriously ill.
How do I claim on critical illness cover?
You’ll need to provide medical evidence of your diagnosis, usually from your consultant or specialist. The insurer will review this against their policy definitions. If your condition meets their criteria, they’ll pay out the lump sum—typically within a few weeks of receiving all documentation. Most insurers have dedicated claims teams to help you through the process.
Does critical illness cover all types of cancer?
Most policies cover cancer, but there are usually exclusions for very early-stage cancers, non-invasive cancers, and some skin cancers. For example, carcinoma in situ (cancer that hasn’t spread) may only qualify for a partial payout. Low-grade prostate cancer often has different terms too. Check the policy wording carefully—we can help you understand what’s covered.
Can I add critical illness cover to an existing life insurance policy?
Usually not—you’d need to take out a new policy. However, you can buy standalone critical illness cover alongside your existing life insurance, or take out a new combined policy. A combined policy often works out cheaper than two separate policies, and you’d be assessed at your current age and health status.
What happens if I get a condition that’s not on the list?
Unfortunately, you can only claim for conditions specifically listed in your policy. However, most policies now include “additional” or “partial” payment conditions that cover less severe illnesses for smaller payouts. Some policies also include total permanent disability cover, which may pay out if you can’t work regardless of the specific illness.
Should I get critical illness or income protection?
They do different things. Critical illness pays a one-off lump sum for specific serious conditions. Income protection pays a regular monthly income if you can’t work due to any illness or injury—not just specific conditions. Income protection is more comprehensive for long-term inability to work, while critical illness is better for immediate large costs like paying off a mortgage. Many people benefit from having both.
Is the payout taxable?
No. Critical illness payouts are completely tax-free. You receive the full amount and can use it however you want with no tax implications. If you write the policy in trust, the money also stays outside your estate for inheritance tax purposes.
What if I have a pre-existing condition?
You can often still get cover, but the insurer may exclude that specific condition, charge higher premiums, or decline cover depending on the condition. It’s important to be completely honest on your application—non-disclosure could void your entire policy. We work with specialist insurers who are more flexible with pre-existing conditions.
Want to see what critical illness cover could cost?
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See what’s availableImportant Information
Critical illness cover policies have no cash-in value at any time. If you stop paying premiums, your cover will end. Not all conditions are covered—each policy has a specific list of covered conditions with defined criteria that must be met for a claim to be valid. Pre-existing conditions may be excluded. The cost of your policy depends on individual circumstances including age, health, smoking status, and the level of cover you choose. Always read your policy documents carefully to understand what is and isn’t covered.
Albot is an introducer and technology platform, not an insurer. Applications submitted via Albot may be passed to Loan.co.uk Ltd, which provides insurance advice, carries out suitability assessments, and arranges policies with insurers. Loan.co.uk Ltd is authorised and regulated by the Financial Conduct Authority (FRN: 718486).