Critical Illness Insurance

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Introduction – Critical Illness cover UK 

UK critical illness cover is a long-term insurance policy. If you are a contractor who runs your own company or are employed, you may be looking for a policy which can provide you with Critical Illness Insurance cover.

Please note, a UK critical illness insurance for contractors’ policy will provide the policyholder with a tax-free payout. This comes if medical professionals diagnose the individual with a specified medical condition or injury that the insurer lists.

The types of conditions 

Each insurer that provides UK Critical Illness cover will list what specific medical conditions they cover. In addition, they will also state how severe the condition must be. To summarise, some examples of what the contractor Critical illness insurance cover (UK) policy will include are:

  • Stroke.
  • Heart attack.
  • Different types and stages of cancer.
  • Coronary artery bypass.
  • Kidney failure.
  • Major organ transplant.
  • Multiple sclerosis.

Please note, some insurers will also cover a permanent disability due to injury or illness.

What to consider? 

It is vital to keep in mind that the UK Critical illness insurance policy will not cover any pre-existing medical conditions you had before taking out the plan. Therefore, if you are looking for UK critical illness cover for a specific condition, it is best to speak to an adviser. Important to bear in mind, the policy details will set out precisely what is and what is not available under the protection.

As a contractor, it is vital to consider a Critical illness policy as you no longer have the support of an employer. This will give you peace of mind if you are diagnosed with a severe illness, and in turn, you will have protection for your family.

You can use the payout from the policy in multiple ways. Therefore, if your illness or injury prevents you from working, you can use this to replace your salary. In turn, this will help you pay for the mortgage and household bills. You can also use the payout to make adjustments to your home. Please note, it will include a wheelchair ramp or a stairlift.

The benefits of UK Critical Illness cover: 

To sum up, the benefits of UK Critical illness insurance cover that you will receive are:

  • You receive a tax-free payout as soon as you are diagnosed with a critical illness or have an ongoing disability.
  • If you are unable to work, you can use the payout to keep a roof over your family’s head. In addition, you can also use this to make adjustments to your home.
  • The payout you receive from Critical illness insurance cover will stop you from dipping into your savings. Therefore, you can use this to help your family in other ways.
  • A  UK Critical illness insurance policy covers you for several different medical conditions and this includes illnesses or disabilities.
  • It gives you peace of mind. Therefore, you will know that whatever the future has in store, you and your family will be financially secure.

Your family may solely depend on your salary to maintain the household bills. If this is so, an Income Protection (IP) policy may interest you. Above all, the insurance will pay a monthly income if you fall ill. It will also provide you with this if you have an injury and are unable to continue working. Most importantly, the difference between CI and IP is that you only receive a one-off payout with UK Critical Illness cover.

Furthermore, it is not affected by your ability to continue working but based on the illness and severity of the condition and what your policy covers.


We have written other extensive articles that cover Contractor Mortgagescontractor insurance in general and, Relevant Life Insurance for contractors. 

Finally, please complete the form below if you would like to request a quote for UK Critical illness cover from our trusted partners, Broadbench.

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Frequently Asked Questions

It is worth noting that there is no cash-in value to critical illness cover UK if you do not use it. Therefore, you will not be able to claim your payments back if you never make a claim.

A critical illness cover UK payout will be either the full sum assured or a percentage based on the severity, if you were to contract an illness covered under the plan.

Each insurer will have a list of what specific medical conditions that they cover. In addition, they will also state how severe the condition must be. Some examples of what the Critical illness insurance policy covers includes are a stroke, a heart attack, different types and stages of cancer, Coronary artery bypass, kidney failure, major organ transplant, multiple sclerosis. Some insurers will also cover permanent disability as a result of injury or illness.

As long as your condition meets the definition within the policy the payout can be immediate. There could also be a slight delay of up to three months in some cases.

Published On: August 1st, 2022 / Categories: Finances, Finances post, Financials /

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