Critical Illness Cover
What is Critical Illness Cover?
Critical illness cover is a type of insurance policy that provides financial support if you are diagnosed with a serious illness. Unlike life insurance, which pays out upon death, critical illness insurance pays a tax-free lump sum when you are diagnosed with a qualifying condition. This can help cover essential costs, including medical expenses, mortgage payments, or even day-to-day living costs while you focus on your recovery.
At Peak Mortgages & Protection, we understand that dealing with illness is tough enough without the added stress of financial worries. That’s why we offer tailored advice to ensure you get the right level of protection for your needs.
Benefits of Critical Illness Cover
- Financial Security: Receive a lump-sum payment to use however you need.
- Peace of Mind: Reduce financial stress during a difficult time.
- Comprehensive Coverage: Covers a range of serious illnesses, including cancer, heart attacks, and strokes.
- Flexible Use: Use the payout for medical treatment, lost income, or essential living expenses.
How Much Critical Illness Cover Do I Need?
The big question. You are thinking, well how much critical illness cover do I need? The short answer – it depends. The amount of critical illness cover you need depends on your financial commitments and lifestyle. Consider factors such as:
- Mortgage or Rent Payments: Ensuring your home remains secure.
- Lost Income: Covering salary gaps while you recover.
- Medical Expenses: Paying for treatment or private healthcare.
- Daily Living Costs: Maintaining your standard of living.
Factors That Affect Your Cover
Your age impacts your premium. Generally, younger applicants pay lower rates.
Yes, pre-existing conditions may influence the cost and availability of cover.
Many policies allow for adjustments based on changing circumstances, such as having children or buying a home.
Our advisers can help you calculate the right level of cover for your situation.
What Does Critical Illness Cover?
Critical illness insurance typically covers a range of serious health conditions. While the exact conditions vary by provider, the most commonly covered illnesses include:
Conditions Usually Covered:
Cancer (certain types and stages)
Heart attack
Stroke
Organ failure
Multiple sclerosis
Parkinson’s disease
Major surgeries (such as organ transplants)
Understanding Your Policy
No, some early-stage cancers may not be included. Check your policy details.
Most policies do not cover pre-existing conditions, but some providers offer limited options.
Yes, many insurers allow you to include child cover at an additional cost.
Is Critical Illness Cover Worth It?
Many people wonder if critical illness cover is worth it. The reality is that serious illness can strike at any time, and having financial support in place can make a world of difference.
Key Reasons to Consider Critical Illness Cover:
- Financial Stability: If you are unable to work, your payout can cover essential expenses.
- Reduced Stress: Helps you focus on recovery without financial worry.
- Tailored Options: Choose a policy that suits your needs and budget.
Common Myths About Critical Illness Cover
Savings can quickly run out—having insurance ensures long-term financial security.
Serious illnesses can affect anyone, and premiums are lower when you’re younger.
The NHS provides excellent care, but additional funds can help cover private treatment or recovery costs.
If you’d like to explore your options, our team at Peak Mortgages & Protection is here to help.
Why Choose Peak Mortgages & Protection?
- Independent Advice: We compare multiple providers to find the best policy for you.
- Tailored Solutions: Every policy is personalised to your needs.
- Expert Support: Our advisers guide you through the process with clarity and care.
Simply get in touch by phone, messenger, or email, and we’ll book an initial consultation. It will be either in person at our Belper office or via a video call anywhere in the UK. We’re here to make the process stress-free so you can focus on what matters most.
Frequently asked question
Have A Question?
What is critical illness cover?
Critical illness cover is an insurance policy that pays out a tax-free lump sum if you’re diagnosed with a serious medical condition listed in the policy, such as cancer, heart attack, or stroke. It’s designed to help with financial burdens during a difficult time.
What illnesses are typically covered?
Most policies cover major illnesses like cancer, heart attack, stroke, multiple sclerosis, and organ failure. The exact list varies between insurers, so it’s important to review the policy details carefully.
Do I need critical illness cover if I already have life insurance?
Yes, critical illness cover and life insurance serve different purposes. Life insurance pays out if you die, while critical illness cover provides financial support if you survive a serious illness but are unable to work or need time to recover.
How much does critical illness cover cost?
The cost depends on factors such as your age, health, lifestyle, occupation, and the level of cover you choose. A qualified adviser can help you find the right balance of coverage and affordability.
Can I get critical illness cover if I have a pre-existing condition?
It depends on the condition and the insurer’s criteria. Some providers may offer cover with exclusions, higher premiums, or may decline the application altogether. A specialist adviser can help find the most suitable options.
Is the payout from critical illness cover tax-free?
Yes, in most cases the lump sum payment from a critical illness policy is tax-free and can be used however you wish — from covering medical costs to paying off your mortgage.
Can critical illness cover be added to a mortgage protection plan?
Absolutely. Many people choose to combine critical illness cover with life insurance as part of their mortgage protection plan, ensuring the mortgage can still be paid if they fall seriously ill.