A lump sum payment to help you focus on recovery, not bills
Critical Illness Insurance: Financial Protection When You Need It Most
What is Critical Illness Insurance?
Critical Illness Insurance is a financial safety net designed to provide a lump sum payment if you’re diagnosed with a serious illness covered by your policy. Unlike income protection which provides ongoing monthly payments, critical illness cover gives you a one-time cash sum that you can use however you need during one of life’s most challenging times.
The policy pays out when you’re diagnosed with a specified critical illness and survive for a set period (typically 10-14 days, depending on the provider). This money is yours to use as you see fit—whether that’s covering medical expenses, replacing lost income, paying your mortgage, or simply giving you the financial freedom to focus on recovery without worrying about bills.
Critical illness can strike anyone at any age. While we like to think it won’t happen to us, the reality is that 22% of all critical illness claims in 2025 are from people under 40. Having this protection means that if the unexpected happens, you and your family won’t face financial hardship on top of dealing with a serious diagnosis.
With insurers paying out an average of £67,600 per claim in 2024, and over 91% of claims being paid, critical illness insurance provides real, tangible support when families need it most. It’s about ensuring that a health crisis doesn’t become a financial crisis too.
£8bn
Record protection claims paid 2024
£1.3bn
Critical illness payouts (5% rise)
£67,600
Average critical illness payout
62%
Cancer claims (£812m paid)
91-93%
Claims paid by major insurers
22%
Claims from people under 40
£21.9 million paid out every day to families across the UK
What Conditions Are Covered?
Most providers cover 30-60+ conditions. Here are the key conditions typically included:
Most Common Claims
- Cancer (excluding less advanced cases) – 62% of all claims
- Heart attack – of specified severity
- Stroke – resulting in permanent symptoms
- Coronary artery bypass graft
Serious Conditions
- Major organ transplant – from another donor
- Kidney failure – requiring permanent dialysis
- Multiple sclerosis
- Parkinson’s disease – resulting in permanent symptoms
- Motor neurone disease
Physical Conditions
- Paralysis of limbs – total and irreversible
- Blindness – permanent and irreversible
- Deafness – permanent and irreversible
- Loss of limbs – permanent physical severance
- Third-degree burns – covering 20%
Neurological & Other
- Alzheimer’s disease and dementia
- Coma – with associated permanent symptoms
- Liver failure – end stage
- Benign brain tumour – with permanent symptoms
- Bacterial meningitis – with permanent symptoms