Critical Illness Cover
A tax-free lump sum paid on diagnosis of a serious illness — use it however you need.
Critical illness cover pays a tax-free lump sum if you are diagnosed with a specified serious condition — such as cancer, heart attack, or stroke. Unlike income protection, which replaces your monthly income, critical illness cover gives you a one-off payment to use however you choose: pay off the mortgage, cover private medical treatment, adapt your home, or simply give yourself the financial breathing space to focus on recovery.
What is Critical Illness Cover?
Critical illness insurance pays a lump sum on diagnosis of a specified serious illness — provided the diagnosis meets the insurer's definition of that condition. The number of conditions covered, and the definitions used, vary significantly between insurers. Some policies cover 50 conditions; others cover more than 100. Some definitions are broad and pay out readily; others are narrow and may not pay out in circumstances you would expect. This is why independent advice matters — we compare not just price but the breadth and quality of cover across the whole market. Common conditions covered include cancer (excluding less advanced cases), heart attack, stroke, multiple sclerosis, Parkinson's disease, kidney failure, and major organ transplant. Many policies also include children's critical illness cover at no additional cost.
Who is it suitable for?
Key Benefits
Real-World Examples
Cancer diagnosis — mortgage paid off
A 44-year-old is diagnosed with breast cancer. Her critical illness policy pays out a £200,000 lump sum on diagnosis. She uses it to pay off her mortgage entirely — removing the biggest financial pressure from her life and allowing her to focus on treatment and recovery without worrying about monthly repayments.
Heart attack — income replaced during recovery
A 52-year-old business owner suffers a heart attack and is unable to work for seven months. His critical illness cover pays out £150,000. He uses part of the money to cover his lost income during recovery, part to fund private cardiac rehabilitation, and part to make modifications to his home. He returns to work knowing his finances are intact.
Stroke — home adaptations and care costs
A 48-year-old suffers a stroke that leaves her with partial mobility impairment. Her critical illness policy pays out, providing funds to adapt her home — including a stairlift and wet room — and to cover the cost of private physiotherapy and occupational therapy not available on the NHS.
Child's serious illness — included cover
A couple's eight-year-old son is diagnosed with a serious condition covered under the children's critical illness benefit included in their policy. The policy pays out a proportion of the sum insured — giving the family the funds to take time off work, cover travel costs to specialist treatment, and adapt their home during his recovery.
Frequently Asked Questions
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Find out if your business protection is adequate, correctly structured, and as tax-efficient as it could be.
Why Choose JK Insurance Brokers?
- Whole-of-market access — all leading insurers
- FCA authorised & regulated (FRN 1047042)
- No broker fees — ever
- Business protection specialists
- Personal, one-to-one service with Tom Dobbe
- UK-wide advice by phone or video call
- Ongoing reviews as your business grows
Speak Directly to Tom
I help company directors and business owners protect their families, shareholders and businesses.
01737 333249[email protected]