Critical illness cover could provide a financial payout if you’re diagnosed with an illness or condition covered by your policy – subject to a valid claim. Conditions could include some forms of cancer, Alzheimer’s/dementia and heart disease.
If you make a successful claim and receive a payout, this money could be a lifeline. Use it to pay for private treatment, to make your home more accessible or just to cover living expenses while you focus on your health.
Conditions may apply to claims. For example, you may not be covered for illnesses that were pre-existing when you took out your policy. You may also need to live for a defined period after any new diagnosis.
Who might need critical illness cover?
Critical illness insurance could be reassuring for anyone to have, but particularly if you have significant and shared financial commitments. For example, if you’re the primary earner and your loved ones might struggle to manage financially if you were to fall ill and couldn’t work.
If you have a family, you may be able to add your children to a critical illness policy. You'll then all benefit from as much cover.
An insurer will pay out if your claim meets the conditions stated in your policy terms. This could include exclusions like previous health issues. A payout also depends on you providing accurate information at the time of application.
With most combined life and critical illness policies, you can only claim once for either a critical illness or on the death of a policyholder. Then the policy is cancelled. While separate policies may be more expensive, they allow you to claim once for a critical illness and then at the time of death on a life insurance policy.
Scottish Widows, our life insurance and critical illness specialist, paid out on 98.4% of their claims in 2022.
Remember that life insurance products have no cash value at any time. If no valid claim is made by the end of the policy term, it will end, and you’ll get no money back. Similarly, if you don’t pay your premiums on time your cover will stop. Your policy will also end, and you’ll get no money back.
