Critical illness cover is essential

The harsh reality

No one wants to believe it would happen to them. But in 2023, the number of critical illness claims rose by 10%¹ and the value of individual claims rose by 13%, hitting a record £1.2bn. Cancer was the most common reason for making a claim. Many people across the UK are therefore directly benefitting from having critical illness cover.

How does it help?

Research² found that having cancer costs each patient in the UK an average of £891 a month in addition to their usual outgoings. This could be due to a loss of income, the cost of travelling to appointments, or buying new clothes and wigs. If you had critical illness cover and were diagnosed with one of the illnesses listed on your policy, you would receive a tax-free lump sum, helping to alleviate some of that burden. The average payout per claim in 2023 was £67,267¹.

Do you need it?

Think about how you would cope financially if you were unable to work due to a serious illness. Even if you do not have dependents, critical illness cover is strongly recommended as you would still need to support yourself. It is particularly beneficial for those who could not draw on savings to help pay the bills.

When you are protected

Critical illness cover only protects you against certain illnesses, so it’s vital to make sure you know when you would be insured. The Association of British Insurers state that critical illness insurance must include cover for cancer, heart attack and stroke. Beyond that, the illnesses covered vary depending on the insurance company. If you have a pre-existing medical condition, a qualified adviser can help you find a policy that suits your needs.

Reviewing your cover

It’s important to review your cover regularly, especially after a major life event such as a marriage, birth of a child or house move. Similarly, if your health has improved or declined, you may need to revise your level of cover. Also, insurers are constantly evolving their policies to reflect medical advancements, so you may now be able to get more comprehensive cover.

Combining with other policies

Many insurers offer critical illness cover as an add-on when purchasing life insurance, which could be cheaper than taking out two separate policies. If you have a combined policy, it will either pay out in the event of death or the diagnosis of a critical illness – whichever comes first.

It’s good to talk

A qualified adviser can help ensure you have the right level of cover, based on your medical history and other circumstances.

As with all insurance policies, conditions and exclusions will apply 

¹ ABI, 2024

² Macmillan Cancer Support, 2021