As we get older, the risk of being diagnosed with a serious illness increases and many illnesses can be life-changing. In 2022, Group Risk Industry paid out £2.1 billion in claims to families. Which works out to be £6.05 million per day. Notably, the main claim across all products was cancer.

There are ways to protect yourself financially, and one of those ways is a protection product called critical illness cover. This type of insurance provides a lump sum payout when you’re diagnosed with a severe illness. This one-off payment can be used however you see fit. Lots of people use the payment to address various needs, such as covering a mortgage, household bills or medical expenses. 

Consider critical illness insurance if:

• You don’t have other types of insurance, such as mortgage life insurance or income protection.
• Your savings aren’t sufficient to support your family.
• Your employer doesn’t provide adequate sick pay to maintain your family’s lifestyle.
• You’re self-employed and ineligible for statutory sick pay payments.

However, it’s really important that when you are looking for critical illness cover you clearly understand the policy details. Make sure that you ask your protection adviser what medical ‘exclusions’ are within the policy.

Understanding Exclusions.

An exclusion refers to a specific condition or circumstance that is not covered by the insurance. When a policy has exclusions, it means that if the policyholder experiences a critical illness or condition listed as an exclusion. The insurance provider will not pay out.

Does Critical Illness Insurance Cover Cancer?

The short answer is yes. Critical illness insurance is designed to provide financial support when individuals are diagnosed with severe health conditions, and cancer undoubtedly falls into this category.

 The Association of British Insurers highlights the following for critical illness policies.

 “All critical illness policies cover the following illnesses, providing they are of a certain severity:

• cancer
• heart attack
• stroke

Covers vary between insurers and some policies include additional medical conditions, so check the details of your policy with your insurer.” The Association of British Insurers, February 2024

But what is meant by ‘severity’?

When an insurer mentions severity, they are talking about risk. Several factors together, make up the severity of a condition including:

• The duration of the illness
• Remission status
• Cancer stage
• Whether or not you have other medical conditions

These play a pivotal role in determining premium prices and the likelihood of approval; alternatively, the insurer may place a cancer exclusion onto the policy.

For instance, an individual who purchases critical illness cover before they are diagnosed with cancer has a much higher chance of being approved, with no cancer exclusion. However, someone who has been in remission from breast cancer for several years, may be able to obtain critical illness cover, but there may be a breast cancer exclusion on their policy. However, other cancers that are not breast cancer-related can be covered within the policy.

Lifestyle factors affecting critical illness cover for cancer

In addition to the type and stage of cancer, insurers may also consider lifestyle factors, family history and overall health when determining cover terms. This personalised approach ensures that the risk has been evaluated and the individual receives the necessary financial support during challenging times.

In navigating the complexities of critical illness insurance for cancer. Individuals must ensure they clearly understand the terms, conditions, and factors influencing their premiums. While critical illness insurance does encompass various types of cancer, the specific details will differ from one insurer to the next. Always check with your protection adviser on the medical conditions that are covered within your policy terms.

If you are unable to obtain critical illness cover, another financial product that could be available is cancer life insurance.

What cancers are covered by critical illness insurance?

The type of cancer within a critical illness policy can impact the insurance quote, with over 200 different types of cancer. It’s essential for individuals to carefully understand which cancers are included in their policy to ensure their unique needs are met.

Rather than providing an exhaustive list of covered and non-covered cancers. It is more practical to emphasise a few examples from each category.

If you have a critical illness policy and are diagnosed with cancer such as Hodgkin Lymphoma or breast cancer, you are more likely to be covered, given their prevalence and recognisability. On the other hand, rarer types might not be explicitly mentioned in the policy terms.

The key message here is that regardless of the specific type of cancer, a specialist protection broker will be committed to working closely with you to identify the most suitable cover. It’s really important that when you speak with an adviser, as well as provide honest and thorough information. This is to benefit you by ensuring that the policy pays out if you are diagnosed with cancer or another serious illness, as defined in your policy terms.

Ultimately, critical illness cover can work as a vital safety net, offering financial support when individuals need it the most. For more information, speak to an adviser today.

Phone: 0800 083 2829.