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What is Critical Illness Cover?

What would happen to your family if you were unable to work? Would they be able to cope financially if you were so ill that you couldn’t pay towards the bills or your mortgage? Critical Illness Cover exists to safeguard your family if this scenario was to unfortunately arise. We don’t know what life will bring us from one day to the next. But critical illness cover is a way to prepare against the worst happening.

If you suffer a stroke or heart attack, or develop cancer or another serious illness which meets the insurer’s specifications. You will receive your Critical Illness insurance sum while you’re still alive – to support yourself and your family at a time when you may be unable to do so yourself. You might even opt to use the money to create happy memories. Such as that dream holiday or trip.

This kind of insurance is invaluable to those who have been forced to leave their job due to the severity of their illness. Or have lost their independence and require costly care for their condition. What’s more, many insurers will even include some level of cover for your children at no extra cost, too. With all of our insurers, a Critical Illness Cover policy will even pay out if you die, just as a life insurance policy would.


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Critical Illness Cover FAQs

What’s the difference between Critical Illness Cover and Life Insurance?

Critical illness cover is designed to pay out when you’re diagnosed with a life-changing illness which is specified by the cover provider. Not all illnesses are covered so you’ll need to be aware of what illnesses do result in a pay out and which don’t.

Life insurance is designed to pay out when you die, so you can rest assured that your loved ones will have financial stability when you’re gone. This could be to pay off your mortgage or provide a lump sum to your family.

What are the benefits of Critical Illness Cover?

  • Tax-free payout – The money you receive from a critical illness policy is exempt from tax, meaning that if you are diagnosed with a serious illness during the policy term and it is one of the pre-defined illnesses listed, you get the full amount and none of it is taken by the tax man.
  • Financial security – You can use the money to pay off any debts or to make sure your family have something to help in tough times. If necessary, the money could also be used to pay for medical expenses or for adapting your home to cope with the illness.
  • Cover for your children – Many insurers will also cover your children when a critical illness policy is taken out, however the pay-out depends on what the insurer is offering. You’ll have additional peace of mind knowing your children are also covered.
  • A chance for you to take that dream holiday – It could be that when you’re diagnosed with a life-changing illness that you want to tick a couple of things off of your bucket list. Critical Illness Cover could do that for you, enabling you to take that holiday of a lifetime and create many happy memories at a time when they’re sorely needed.

Are there any considerations with Critical Illness Cover?

As with life insurance, if you were to stop paying the premiums the critical illness cover will lapse and you won’t be protected. It’s important to determine if you can afford the cover before you take out the policy.

It’s extremely important to be completely transparent and honest when applying for cover. If you haven’t disclosed something about your medical history and you need to make a claim, there is a chance your claim could be denied due to this. Honesty is the best policy!

Plans may not cover all the definitions of a critical illness. The definitions vary between product providers and will be described in the key features and policy document if you go ahead with a plan.

What affects the cost of Critical Illness Cover?

The cost of a critical illness plan will be influenced by a several factors; the likelihood that you’ll make a claim, your age and your health and lifestyle. This means that you could reduce the costs of cover if you make positive changes to your health, such as taking steps to lose weight, quitting smoking or reducing your alcohol intake.

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The legal bit...

Your home is at risk if you fail to keep up payments on your mortgage or any other loans secured against it. Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority. Equity release may involve a lifetime mortgage which is secured against your property or a home reversion plan which requires the sale of property for a discounted price. To understand the features and risks, ask for a personalised illustration. You only continue to own your own home with a lifetime mortgage. Equity release may impact the size of your estate and it could affect your entitlement to current and future means-tested benefits. Mint FS Limited , trading as Mint FS , Mint Financial Services and Puzzle Mortgages is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority: FCA Number 460421 Mint FS Limited is registered in England and Wales with company number 11993128. Registered Office: Unit 6 The Centurion Centre, Castlegate Business Park, Salisbury, Wiltshire, SP4 6QX. The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.