Critical illness cover

Critical illness cover pays a lump sum if you are diagnosed with a serious condition that the policy covers, such as certain cancers, a heart attack, or a stroke. The money is paid as a one-off sum that you can use however you wish, for example to clear a mortgage, adapt your home, or replace income.

Each policy lists the conditions it covers and the exact medical definitions that must be met, and these vary between insurers. A claim is paid only if your diagnosis meets the policy's definition, so the quality and breadth of the conditions covered matters as much as the price.

Critical illness cover is often bought alongside life insurance, sometimes as a combined policy, and can be linked to a mortgage. It is different from income protection, which pays a regular income rather than a single lump sum.