How Does Critical Illness Work in the UK?

UK critical illness insurance 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 FCA-regulated with ABI-standardised definitions.

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How does critical illness work in the UK?

UK critical illness 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. 92% of claims are paid.

Who are the main UK providers?

Major UK providers include Aviva, Legal & General, Zurich, Royal London, and Vitality. Each offers different features, conditions, and pricing. All have 90%+ claim rates.

Is UK critical illness regulated?

Yes, the Financial Conduct Authority (FCA) regulates critical illness insurance. The ABI (Association of British Insurers) provides standardised definitions for core conditions.

How much does it cost in the UK?

A healthy 35-year-old might pay £30-50/month for £100,000 cover. Costs vary by age, health, smoking status, and cover amount. Adding CI to life insurance is typically cheaper.

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 = tax-free lump sum for serious conditions. 92% claims paid. Average £67k payout. Major providers: Aviva, L&G, Zurich, Royal London, Vitality.

Critical illness cover in the UK provides financial protection if you're diagnosed with a serious health condition. It's a well-established market with clear regulation and high claim success rates.

Key Points

1Tax-free lump sum payment
240-60+ conditions typically covered
392% of claims paid
4Average payout: £67,000
5Cancer = 65% of claims
6FCA regulated, ABI definitions

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 conditions and definitions
4Get personalised quotes
5Speak to protection adviser

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UK Critical Illness: Key Facts

What Is Critical Illness Cover in the UK?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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