What Is Critical Illness Insurance?
Critical illness insurance pays a tax-free lump sum if diagnosed with serious conditions like cancer, heart attack, or stroke. Covers 40-60+ conditions. 92% of claims paid. Average payout £67,000.
Critical illness insurance provides financial protection if you're diagnosed with a serious health condition. Unlike life insurance which pays on death, critical illness pays while you're alive, giving you money when you need it most for treatment, mortgage payments, or lifestyle changes.
Key Points
- 1Tax-free lump sum on diagnosis
- 2Covers 40-60+ serious conditions
- 3Cancer = 65% of claims
- 492% of claims paid successfully
- 5Average payout £67,000
- 6Use the money however you choose
Eligibility Criteria
- Diagnosis must meet policy definition
- Condition occurs after policy starts
- 14-day survival period typically applies
- Pre-existing conditions excluded
Typical Timeframe
Claims typically paid within 4-8 weeks of diagnosis and submission of medical evidence.
Next Steps
- 1Calculate how much cover you need
- 2Compare UK providers
- 3Check conditions and definitions
- 4Get personalised quotes
- 5Speak to a protection adviser
Why This Matters for Your Mortgage
Understanding these details helps you make informed decisions during the mortgage process. Every element of your application—from deposits to documentation—affects your approval chances and the rates you can access.
Lenders assess applications holistically, weighing multiple factors together. Knowing what they look for allows you to present the strongest possible application. This is particularly important for non-standard situations where lender criteria varies significantly.
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Related Questions
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ProtectionContent reviewed: January 2026