Critical illness insurance:
Helping to safeguard your family and secure your future
Critical illness insurance provides you with financial support and security when you need it most.
What is Critical Illness Insurance, and do you need it?
Critical illness insurance pays out a lump sum if you are diagnosed with a serious illness. The pay out can be used to cover your mortgage, household bills, or for medical expenses.
You may need critical illness insurance if:
- you don’t have any other kind of insurance, like mortgage or income protection, that will cover you if you’re diagnosed with a serious illness.
- you don’t have enough savings to support your loved ones.
- your employer won’t pay sufficient sick pay to maintain your family’s lifestyle.
- you’re self-employed and illegible for any statutory sick pay payments.
At The Insurance Surgery, we will always ask what type of protection you already have in place. It might be sick pay, savings, or income protection. We won’t provide a quote for critical illness insurance unless it’s right for you.
What illnesses are covered under critical illness cover?
It varies, but most policies cover:
- cancer
- heart attack
- stroke
- multiple sclerosis
- liver or kidney failure
- major organ transplant
Each insurance company will have their own list of illnesses covered through critical illness plans. We promise we will always talk through the details with you over the phone.
Is critical illness cover worth it?
The answer to this question depends on you.
Critical illness insurance is worth it if:
- you want financial security and peace of mind, should you develop a serious illness that affects your ability to work or live normally.
- you want to protect your family from the loss of income caused by your illness.
- you have no other way to support your family.
Critical illness insurance may not be worth it if:
- you have enough savings to cover your expenses if you can’t work due to a serious illness.
- you have income from other sources, like your family or investments.
- you have other types of insurance that will provide better cover.
We only want you to take out a critical illness plan if we think that it’s a policy that you need. During our phone conversations, we’ll talk to you openly and honestly about critical illness insurance. We’ll explain in depth the pros and cons and give you all the information you need to make an informed decision.
All you need to know about critical illness cover
Critical illness insurance pays out a lump sum if you’re diagnosed with one of the illnesses covered by your policy. The lump sum can be used to pay for:
- your mortgage or rent
- household bills
- medical expenses
- ifestyle changes caused by your illness
or anything else that your family needs to spend money on.
Critical illness insurance is different from life insurance and income protection insurance. Life insurance pays a lump sum if you die. Income protection insurance provides a regular income if you can’t work because of illness or injury. Critical illness insurance covers serious illnesses, like cancer, heart attack, or stroke.
The amount of cover and policy length that you need will depend on your personal circumstances. Ask yourself:
- How much would it cost to cover your essential expenses if you’re diagnosed with a serious illness
- How much would it cost to cover any extra costs
- Is the length of cover reliant on an event, like retirement or paying off your mortgage
There are two types of critical illness cover. With level term, your premiums remain the same for the entire policy. If you choose decreasing term, your monthly payments reduce over time. Level term cover is generally more expensive. It also offers more protection and flexibility.
We don’t expect you to know the full details of each type of policy.
That’s what we’re here for.
With our support, we can talk through the various options and help you decide which type is best for you. We’ll answer all your questions, and make sure that you fully understand how critical illness works, and how it can support your finances.
Is it a stand-alone policy, or is it part of a life insurance plan?
Critical illness cover can be bought as a standalone policy or as an add-on to your life insurance. A standalone policy means you can choose the amount and length of cover, independent of your life insurance. You can also keep your critical illness policy even if you cancel your life insurance.
If you add critical illness cover to your life insurance policy, you pay one premium for both. This may work out cheaper and you can benefit from the same terms and conditions for both.
We know that everyone is different. For some people, the stand-alone policy is better suited, while others may find that the life plan add-on is what they are looking for.
We will always make sure that you’re choosing the right policy for YOU.
We’ll always check that you’re getting maximum protection for minimum prices.
How much does critical illness cover cost?
We’d love to give you an upfront cost for your critical illness cover. But we know that everyone is different, and this can change the cost of your monthly premiums.
Insurers will base their premiums on several different factors including:
- your age
- weight and health
- smoker or non-smoker
- medical history
- family history
- your job
- amount of cover and for how long
Let’s look at two hypothetical examples of customers seeking critical illness cover:
Critical illness insurance example cost #1
Bridget is 35 years old. She is a single mum with two children. She works as a nurse. She wants to buy critical illness insurance with a pay out of £100,000. She has no pre-existing medical conditions or family history of critical illness. She doesn’t smoke and is healthy. She chooses a level term policy over 20 years.
Bridget’s monthly premium is £30.31. She would pay £363.72 per year.
£30.31 per month | £100k payout
Critical illness insurance example cost #2
Robert is 45 years old. He is married. He works as an architect. He wants £150,000 of critical illness cover for 15 years. He has high blood pressure and high cholesterol. Both are controlled by medication. He has a family history of heart disease. He chooses a decreasing term.
Robert’s monthly premiums are £56.40. He would pay £676.80 per year.
£56.40 per month | £150k payout
Whatever your circumstances, we are confident that we can find you a suitable critical illness plan. What’s more, with our price promise guarantee, you can feel confident that you won’t find a better price anywhere else.
Everything we do is about finding you the best possible protection, for the lowest possible price.
Can you take out critical illness insurance if you have a complicated medical history?
Your medical history doesn’t have to mean a ‘no’. If you have a complicated medical history, critical illness cover will be more expensive. However, we’re confident we can find you the best fit policy for your needs.
Our relationships with niche insurers across the UK mean that we can usually find a positive solution for people, even with the most complex medical histories.
We will do whatever we can to help you protect your family and stabilise your finances.
All you need to do is focus on your health.
Critical illness insurance for the self-employed
If you’re self-employed, you don’t get work benefits like sick pay. If you develop a serious illness that stops you from working, you may have to rely on your savings to support your family.
Research by LV= found that 41% of self-employed workers have no savings at all, and 28% would be forced to rely on family if they couldn’t work.
If you’re self-employed, critical illness insurance can provide valuable financial protection and peace of mind, should you face a devastating diagnosis.
How can The Insurance Surgery help you find the best critical illness insurance?
The Insurance Surgery works with a wide range of insurance providers to find the best fit for your needs and budget.
We don’t provide quotes online. Instead, we offer a personalised service over the phone, taking the time to get to know you and exactly what cover you need. We often have access to policies that aren’t available to the general public.
Our price promise means that our quotes won’t be cheaper anywhere else. You can trust us to find the right policy at the right price.
Need Advice Regarding Critical Illness Insurance?
We answer your most frequently asked questions.
Critical illness insurance pays out a lump sum, should you be diagnosed with a serious illness. It’s worth checking what illnesses and medical conditions are covered by a policy before you buy it.
Where you have sufficient savings, investments, sick pay, or other sources of income to support your family if you receive a serious illness diagnosis or if you die, you may not need life or critical illness insurance. However, it’s always best to speak to an advisor before making a decision.
You may need critical illness insurance if:
- you don’t have insurance that would cover you for a serious illness diagnosis.
- you don’t have enough savings to support your loved ones if you can’t work.
- your employer doesn’t pay out sufficient sick pay if you can’t work.
But it’s always best to talk to an insurance advisor before making a decision.
You can take out critical illness insurance for children if they meet the minimum age requirement for the policy. This type of cover is usually included as a benefit in the parent or guardian’s life insurance policy. It pays out a lump sum if your child is diagnosed with one of the illnesses covered by the policy.
Yes, you can take out life insurance on a family member, but you must be able to prove that their death would cause you financial loss. This is called insurable interest. For instance, if that family member owes you a large sum of money or you would have to pay for their funeral and other expenses, you may be able to take out life insurance on them. However, insurance providers vary in their approach to this, so it’s best to speak to an advisor.
Yes, you can, but it may affect the terms and conditions of your policy. Your cover will generally be more expensive and have more exclusions than for people who do not have a family history of cancer.
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Tom has been incredibly helpful throughout the whole process of getting my life insurance set up. Very knowledgeable and absolutely ‘on it’ to get me the best product out there.
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Service was first class, Simon kept me informed at every step in the process.I would have no hesitation in dealing with him again.
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Dealt with Karl who could not have been more helpful. Made the whole process of getting life insurance far easier than other providers I had approached.
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Useful Links
If you have any further questions about anything to do with Life Insurance and protection for your family, please feel free to contact our team of expert Life Insurance advisors.
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