What is the best critical illness cover in 2024?

How critical illness cover works

Critical illness cover works by providing a tax-free payout if you’re diagnosed with a serious illness or condition that’s covered by the policy. It’s often included as part of a wider life insurance package, but you can find standalone policies as well. It’s designed to help remove some of the financial stress that can result from a diagnosis, and for this reason it’s important to choose the right level of cover for your needs.

You’ll need to decide how much you want the policy to pay out, which will typically be based on your earnings, outgoings and mortgage payments, and how long you want it to last for (such as until the mortgage is paid off or until the upper age limit is reached, typically around the age of 75). You’ll also be able to choose between single and joint policies, depending on you and your family’s needs.

Bear in mind that there may be time limits – you may be unable to claim in the first 90 days of opening a policy, for example, and similarly, your claim may be rejected if you die soon after diagnosis – and you’ll also only be able to claim once for a single condition. After you’ve made a successful claim and you receive your lump sum payment, your policy will end.

However, if your critical illness protection forms part of your life insurance policy, the payout and closure rules can work differently. If you’ve purchased it as ‘combined’ cover, it will only pay out once – so if you get a critical illness and then pass away, you’ll only get a payout from the critical illness claim, with no life insurance payout on your death. If, however, it’s arranged as ‘additional’ cover, the policy will pay out both when you’ve been diagnosed with a critical illness, and again on death. Because of the potential for two payouts, this type of cover tends to be more expensive.

How much is critical illness insurance in the UK?

This depends on a whole range of different factors, including:

• The type of policy you choose (such as a single or joint policy, whether it’s part of your life insurance or standalone cover, and decreasing or level term)
• Your age (typically, the earlier you take out cover, the cheaper the premiums)
• Your health/medical history, including family history
• Your occupation (some occupations carry higher risk of developing health problems)
• Your lifestyle (including your hobbies and whether you smoke or drink)
• The level of cover you take out
• The policy term
• Any add-ons or voluntary excess

As with all kinds of insurance, your policy will be tailored to your individual needs and will be priced accordingly. The best critical illness cover in the UK isn’t necessarily the cheapest, so it’s worth comparing the options thoroughly to make sure you’re getting the protection you need.

What does critical illness insurance cover?

Critical illness insurance in the UK can cover as many as 50 conditions, depending on the insurer and policy you choose. Because of the wide range of options, it’s vital to compare critical illness cover and check the terms and conditions carefully. All insurers will have different definitions of critical illness and will cover different conditions accordingly, and even among those conditions that are insured, there may be restrictions (for example, while cancer is typically covered as standard, it may only be certain stages or types).

You may be able to include additional features on your policy as well, either as standard or add-on forms of protection. For example, some policies include cover for your children or other family members as well.

What illnesses are covered?

As a general rule, the following tend to be included as standard:

• Heart attack
• Stroke
• Cancer
• Alzheimer’s disease
• Multiple sclerosis
• Parkinson’s disease
• Organ failure/transplant
• Permanent disability due to illness or injury

Note that this list is by no means exhaustive, and it may also be possible to add specific illnesses to your policy for an additional charge.

Conditions that are not covered

Things that are not typically covered include hereditary illnesses, pre-existing conditions, high blood pressure, chronic conditions and temporary illnesses. You likely won’t be covered if you were aware of any symptoms before taking out a policy, and bear in mind too that some policies will require you to be exhibiting permanent symptoms before you’ll be able to claim. There may also be age limits in place for certain conditions, with any cover being withdrawn thereafter.  

Note that most policies won’t accept claims for any illness or injury as a result of drug or alcohol abuse, self-harm or extreme sports. It’s vital to compare critical illness cover before you make your decision so you can be confident you’re getting the cover that’s right for you.