Is Critical Illness Insurance Worth It?

Critical illness insurance can be worth it if you have a mortgage, dependents, or would struggle financially if seriously ill. The average UK claim pays £67,000 tax-free, and 92% of claims are successful. However, it's expensive and has strict definitions. Consider your existing provisions, savings, and employer benefits before deciding.

What does critical illness cover?

Learn more about what does critical illness cover in our detailed guide.

Critical illness vs income protection

Learn more about critical illness vs income protection in our detailed guide.

Life and critical illness insurance

Learn more about life and critical illness insurance in our detailed guide.

Is critical illness insurance worth it?

Critical illness can be worth it if you have financial dependents, a mortgage, or would struggle if unable to work. The average claim pays out £67,000 - enough to clear debts and fund recovery. Whether it's worth it depends on your circumstances and existing provisions.

What are the pros of critical illness insurance?

Pros include tax-free lump sum payments, ability to clear mortgage/debts, cover care costs, make lifestyle adaptations, and provide peace of mind. Around 92% of claims are paid, and cancer alone accounts for 65% of successful claims.

What are the cons of critical illness insurance?

Cons include cost (premiums can be significant), strict condition definitions, pre-existing condition exclusions, early-stage conditions may not pay, and you get nothing back if you don't claim. It also doesn't replace ongoing income.

Who should get critical illness insurance?

Consider it if you have: a mortgage, financial dependents, limited sick pay, no substantial savings, or a family history of serious illness. It's particularly valuable for main income earners and those who are self-employed.

Is critical illness better than income protection?

They serve different purposes. Critical illness pays a one-off lump sum for specific conditions. Income protection pays a regular income if you can't work for any medical reason. Many advisers recommend both if affordable.

How much does critical illness cost?

Costs vary widely based on age, health, smoking status, and cover amount. A healthy 35-year-old might pay £30-50/month for £100,000 cover. Adding it to life insurance is cheaper than standalone.

Quick Answer

Should I Get Critical Illness Insurance?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Worth it 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 personal circumstances. If a serious illness would cause financial hardship - through lost income, mortgage arrears, or care costs - it can provide vital protection.

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

Ready to discuss your options?

FCA regulated advice tailored to your situation

Get Critical Illness Quote Call Us

Should I Get Critical Illness Insurance?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

Related Questions

Pros and Cons

Who Should Consider It?

People Also Ask

What Our Clients Say