Quick Answer
What Is UK Critical Illness Insurance?
Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience
UK critical illness insurance pays a tax-free lump sum for serious conditions. Regulated by the FCA. Major providers: Aviva, L&G, Zurich, Royal London, Vitality. 90%+ claims paid.
Critical illness insurance 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.
Key Points
- 1Tax-free lump sum payment
- 240-60+ conditions typically covered
- 3Regulated by FCA
- 4ABI standardised definitions
- 5Major providers: 90%+ claim rates
- 6Average payout: £67,000
Eligibility Criteria
- UK resident
- Age typically 18-65
- Health declaration required
- Pre-existing conditions may be excluded
Typical Timeframe
Applications take 1-4 weeks. Claims typically paid within 4-8 weeks of diagnosis.
Next Steps
- 1Calculate cover amount needed
- 2Compare UK providers
- 3Check definitions for key conditions
- 4Get personalised quotes
- 5Speak to a protection adviser
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ProtectionJay Sabine
CeMAP Qualified
29 Years Experience
Content reviewed: January 2026