What does critical illness insurance cover?

Key takeaways

• Critical illness insurance is a type of protection product 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

• Critical illness policyholders make monthly payments in return for a set amount of cover during the policy term

• Policies generally 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 a type of life insurance that provides a lump-sum payment if you’re diagnosed with a serious illness. It is either sold as a standalone insurance policy or as an add-on to a life insurance policy for an extra cost.

It's designed to ease the financial burden that can come with the diagnosis of a severe health condition, especially one that impacts your capacity to work.

The lump sum payment can be used to cover a variety of costs and outgoings, from medical treatment to repayment of debts and daily living expenses such as childcare.

Policies offer peace of mind that you’d be able to cope financially should you be diagnosed with certain conditions that might mean you need time off work.

What illnesses and conditions are typically covered?

A critical illness policy covers a set list of serious medical conditions. The exact conditions differ by insurer and policy, but most plans include a “core group” of illnesses plus optional extras:

🚩 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.

Policies adhere to the definitions set out by the Association of British Insurers (ABI), which specifies what counts as a “critical illness”. The level of cover can vary depending on your provider and policy.

What conditions aren't covered by critical illness insurance?

Not every condition will be covered by critical illness cover. This type of insurance is designed for life-threatening or life-altering conditions of defined severity.

Some policies require the illness to cause permanent symptoms or meet specific medical definitions. Anything less severe, manageable, or outside their definition usually isn’t covered:

• Early-stage illnesses (e.g., Stage 1 cancer, mild stroke, or minor heart attack) often don’t qualify

• Pre-existing conditions may be excluded or increase premiums

💡 Top tip: Most policies also impose a survival period – usually 14 to 30 days after you're diagnosed. If you die before this timeframe your critical illness policy may not pay out (but a life insurance policy would).

The following medical conditions are often excluded:

• Non-invasive cancers, early prostate cancer, or skin cancers like basal cell carcinoma

• Minor strokes or “mini-strokes” (TIAs)

• Mild heart attacks that don’t meet the insurer’s blood test/ECG thresholds

• Hypertension (high blood pressure)

• Type 2 diabetes (unless it leads to another covered condition, like kidney failure)

• Arthritis

• Mental health conditions (e.g., depression, anxiety, PTSD)

• Musculoskeletal conditions like chronic back pain

What types of cancer are not covered by critical illness insurance?

Although cancer is considered a core illness, there are some types of cancer that are typically not included in critical illness insurance policies:

• Non-invasive cancers

• Cancer in-situ

• Pre-malignant cancer

• Cancers with borderline malignancy

• Cancers with low malignancy potential

When and why might I want critical illness cover?

You might consider getting this type of cover if any of the following applies to you:

How much does critical illness insurance cost?

MoneySuperMarket customers pay £43.29^{^} a month for life insurance with a critical illness add-on, on average.

How much you’ll pay depends on your age, medical history, lifestyle and the amount of cover you need.

How do I find the best deals for life insurance with critical illness cover?

• To find the best deal on life insurance with critical illness cover, start by comparing quotes from multiple providers – you can do this using MoneySupermarket.

• When comparing, look beyond price: check exactly which illnesses are covered, how they’re defined, and whether the policy offers partial payouts for less severe conditions.

• Consider how much cover you realistically need. For example, enough to clear debts, pay the mortgage, or support your family’s living costs if you became seriously ill or passed away.

Always disclose your medical history and lifestyle honestly to avoid invalid claims, and review your cover regularly to ensure it still meets your needs as your circumstances change.