Should I Get Critical Illness Insurance?
Wondering whether critical illness insurance is worth it? This guide explains the pros, cons, and who benefits most. Worth considering if you have mortgage, dependents, or limited savings. Average payout £67,000. 92% claims paid.
Is critical illness insurance worth it for you? This decision guide helps you understand how it works and whether it suits your situation. Critical illness provides a tax-free lump sum if diagnosed with a serious condition. Whether it's right for you depends on your personal circumstances, existing provisions, and financial commitments.
Cover is subject to policy terms and conditions. Pre-existing conditions are typically excluded.
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
- Generally recommended if you have a mortgage
- Important for main household earner
- Valuable if limited sick pay from employer
- Consider if family history of serious illness
- Less critical if substantial savings exist
Typical Timeframe
Policies start immediately but have a waiting period (usually 14-90 days) before you can claim. Claims typically pay within 4-8 weeks of diagnosis.
Next Steps
- 1Assess your financial vulnerability to illness
- 2Check employer death in service/sick pay
- 3Calculate how much cover you'd need
- 4Compare standalone vs combined with life cover
- 5Get quotes and speak to an 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
For more detailed information about this topic, visit our comprehensive guide:
Protection
Content reviewed: January 2026
CeMAP awarded by The London Institute of Banking & Finance. Cert CII (MP) awarded by the Chartered Insurance Institute.