Critical Illness Insurance

Critical illness policies usually pay a tax-free lump sum if you suffer from one of the listed critical illnesses and meet the definition set out in the policy. Different policies cover different critical illnesses. Each policy will only cover the conditions set out in the product literature that your financial adviser or insurance company will give you, and no others. However, all critical illness policies cover cancer, heart attack and stroke.

You should not confuse critical illness cover with other types of health insurance such as:

private medical insurance which pays for the cost of private medical treatment; or 

income protection insurance which pays you a monthly income after you have been unfit to work (because of sickness or accident) for an agreed period. The income continues until you are fit to return to work or the policy ends.

Key documents on this issue are listed on the right of this page