Is It Worth It? Key Facts

  • •Average critical illness claim pays £67,000 tax-free
  • •92% of claims are successfully paid out by UK insurers
  • •Worth it if you have a mortgage, dependents, or limited savings
  • •Cancer accounts for 65% of all successful CI claims
  • •Consider your existing employer benefits and savings before deciding
Quick Answer

Should I Get Critical Illness Insurance?

Reviewed by Jay Sabine – CeMAP, Cert CII (MP) – 29 years experience
CeMAP Professional - The London Institute of Banking & FinanceCert CII Member - Chartered Insurance Institute

Is critical illness insurance worth it? Yes if you have mortgage, dependents, or limited savings. Average payout £67,000. 92% claims paid. But expensive with strict definitions. Consider existing provisions first.

Critical illness insurance provides a tax-free lump sum if you're diagnosed with a serious condition. Whether it's worth it depends on your circumstances. If a serious illness would cause financial hardship - through lost income, mortgage arrears, or care costs - it can provide vital protection.

Key Points

  • 1Average claim payout: £67,000
  • 292% of claims paid successfully
  • 365% of claims are for cancer
  • 4Tax-free lump sum payment
  • 5Can clear mortgage and debts
  • 6Strict definitions may limit claims

Eligibility Criteria

  • Recommended if you have a mortgage
  • Important for main household earner
  • Valuable if limited sick pay
  • Consider if family history of illness
  • Less critical if substantial savings

Typical Timeframe

Policies start immediately but have a waiting period (usually 14-90 days). Claims typically pay within 4-8 weeks of diagnosis.

Next Steps

  1. 1Assess your financial vulnerability
  2. 2Check employer death in service/sick pay
  3. 3Calculate how much cover you'd need
  4. 4Compare standalone vs combined with life
  5. 5Get quotes and speak to 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

Critical illness cover guide
Critical illness vs income protection
Life and critical illness insurance

For more detailed information about this topic, visit our comprehensive guide:

Protection
CeMAP Professional - The London Institute of Banking & FinanceCert CII Member - Chartered Insurance Institute
Jay Sabine
CeMAP, Cert CII (MP)
29 Years Experience

Content reviewed: January 2026

CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.

Pros and Cons

Advantages
  • Tax-free lump sum when you need it most
  • Pay off mortgage and debts
  • Cover treatment and care costs
  • 92%+ of claims are paid
  • Peace of mind for your family
Disadvantages
  • Premiums can be expensive
  • Strict definitions may limit claims
  • Pre-existing conditions excluded
  • No payout if you stay healthy
  • Early-stage conditions may not pay

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