How Does Critical Illness Cover Work in the UK?

UK critical illness cover pays a tax-free lump sum if you're diagnosed with a serious condition like cancer, heart attack, or stroke. Policies typically cover 40-60 conditions. Major providers include Aviva, Legal & General, Zurich, Royal London, and Vitality. Around 92% of claims are paid, with an average payout of £67,000. The industry is regulated by the FCA with standardised definitions from the ABI.

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How does critical illness cover work in the UK?

UK critical illness insurance pays a tax-free lump sum if you're diagnosed with a covered condition like cancer, heart attack, or stroke. Most policies cover 40-60 conditions. Claims are assessed against policy definitions.

Who are the main UK critical illness providers?

Major UK providers include Aviva, Legal & General, Zurich, Royal London, and Vitality. Each offers different features, condition numbers, and pricing. Claim success rates are typically 90%+.

How much critical illness cover do UK people typically get?

Most UK policyholders choose cover matching their mortgage (£100,000-£300,000 typically). The average claim payout is around £67,000. Consider mortgage, debts, and 2-3 years' income.

Is critical illness cover regulated in the UK?

Yes, critical illness insurance is regulated by the Financial Conduct Authority (FCA). The Association of British Insurers (ABI) provides model definitions for core conditions to standardise coverage.

Quick Answer

What Is Critical Illness Cover in the UK?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

UK critical illness insurance pays a tax-free lump sum for serious conditions. 92% claims paid. Average payout £67,000. Covers cancer, heart attack, stroke + 40-60 more conditions.

Critical illness cover in the UK provides financial protection if you're diagnosed with a serious health condition. The insurance pays a one-off tax-free lump sum that you can use however you choose - typically to pay off a mortgage, fund treatment, or cover living costs during recovery.

Key Points

1Tax-free lump sum payment
2Covers 40-60+ serious conditions
392%+ of claims paid successfully
4Average UK payout: £67,000
5Cancer = 65% of all claims
6Regulated by FCA

Eligibility Criteria

UK resident
Age typically 18-65 at application
Health declaration required
Pre-existing conditions may be excluded

Typical Timeframe

Claims typically pay within 4-8 weeks of diagnosis and medical evidence submission.

Next Steps

1Calculate cover amount needed
2Compare UK providers
3Check conditions and definitions
4Get personalised quotes
5Speak to a protection adviser

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UK Critical Illness Cover: Key Facts

What Is Critical Illness Cover in the UK?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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