What is critical illness insurance and which conditions does it cover?
Key takeaways
Critical illness insurance is a life insurance add-on that pays out if you are diagnosed with a serious health issue
Different insurers cover different conditions but cancer, heart attacks and strokes are almost always included
Policies won't payout if conditions are easily treatable, temporary, pre-existing, or related to lifestyle choices
What is critical illness insurance?
Critical illness insurance is typically an optional addition to standard life insurance policies. If you are diagnosed with an illness covered by the policy, you'll receive a lump sum payment.
This can help lift the financial burden that can accompany a severe health condition, especially as your capacity to work might be diminished. Your critical illness insurance payout can be used to cover a variety of costs, from medical treatment to daily living expenses.
Which conditions are covered by critical illness insurance?
The conditions covered can vary depending on the insurer, but there are some illnesses that are included in most policies:
Core illnesses typically covered
The core illnesses covered by almost all policies are:
Cancer
Heart attack
Stroke
It’s important to note that not all instances of these illnesses will trigger a payout. The severity of the condition is a critical factor in determining whether a claim is accepted.
Most policies adhere to the definitions set out by the Association of British Insurers (ABI), which specifies what counts as a “critical illness”.
Common conditions covered
In addition to the core illnesses, critical illness insurance often extends to a wider range of conditions including but not limited to:
Alzheimer’s disease (before a certain age)
Aorta graft surgery
Benign brain tumours
Blindness
Coma
Coronary artery by-pass grafts
Deafness
Heart valve replacement/repair
Kidney failure
Loss of speech
Loss of hand/foot
Major organ transplant
Motor neurone disease (before a certain age)
Multiple sclerosis
Paralysis of limbs
Parkinson’s disease (before a certain age)
Third-degree burns
Total permanent disability
Cover is subject to severity requirements, which are detailed in the policy documents. The conditions covered can vary depending on your provider and policy.
Types of cancer not usually covered
Although cancer is considered a core illness, there are some types of cancer that are typically not included in critical illness cover:
Non-invasive cancers
Cancer in-situ
Pre-malignant cancer
Cancers with borderline malignancy
Cancers with low malignancy potential
Exclusions from critical illness insurance
It's also important to be aware of what's not covered. Exclusions can include conditions that are easily treatable, temporary, pre-existing, or related to lifestyle choices.
Do I need critical illness cover?
Deciding whether you need critical illness cover is a personal choice. It may be particularly beneficial if you have dependents who rely on your income.
Pros of critical illness cover
Provides financial support for dependents and family
Helps cover loan costs, such as mortgages
Assists with care and lifestyle adjustments due to health conditions
Cons of critical illness cover
Premiums can be costly, depending on individual risk factors
The policy pays out only once and becomes invalid after a claim or upon death
Not all illnesses are covered, and cover is determined by the severity of the condition
How much does critical illness insurance cost?
The table shows the average monthly prices paid by our customers for life insurance with a critical illness add-on.
Average price means 51% of customers paid this amount or less. Cheapest price means 10% of customers paid this price or less.
Cheapest Price (Per Month) | Average Price (Per Month) |
|---|---|
£0 | £41.35 |
Adding critical illness cover significantly increases the price of a life insurance policy. The average price our customers pay for life insurance without critical illness cover add on is £19.89
How do I find the best deals for life insurance with critical illness cover?
The details of critical illness insurance policies can vary significantly between providers. To find the best deals on life insurance with critical illness cover, compare policies from various UK insurance providers. Platforms like MoneySuperMarket offer a convenient way to compare policies, ensuring you get accurate pricing and can make an informed decision.
Author
Rachel Ditchburn
Former Senior Commercial Manager
Rachel is a former Senior Commercial Manager at MoneySuperMarket, where she oversaw the Protection, Pet and Leisure Insurance channels. Outside of work, Rachel is a keen cook and enjoys live music,...
Reviewer
Katie Bishop
Insurance writer
Katie Bishop is an author and journalist with a decade of writing and editing experience. She has previously worked as an economics editor at Oxford University Press, and her business and finance...
