Critical Illness Insurance

Introduction -Critical Illness Cover UK

UK critical illness cover is a long-term insurance policy. If you are a contractor running your own company or if you are in employment, you may be looking for a policy that provides you with Critical Illness Insurance cover. This policy provides the policyholder with a tax-free payout if medical professionals diagnose the individual with a specified medical condition or injury that the insurer lists.

The types of conditions   

Furthermore, each insurer has a list of what specific medical conditions they cover. They will also state how severe the condition must be. Some examples of what the Critical illness UK insurance policy covers will include:

  • Stroke
  • 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.

What to consider   

It is vital to keep in mind that the policy will not cover you for any medical conditions that you had before taking out the plan. If you are looking for a cover for a specific condition, it is best to speak to an adviser. Precisely what is and what is not available under the protection will be set out in the policy details.

As a Contractor, it is vital to consider Critical illness cover as you no longer have the support of an employer. This cover 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. 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. It will include a wheelchair ramp or a stairlift.

The benefits of UK Critical Illness cover:

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

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

Your family may be solely dependent on your salary to maintain the household bills. If this is so, an Income Protection (IP) policy may interest you. Above all, this will provide you with an ongoing salary 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, with UK Critical illness cover, you only receive a one-off payout.

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.


Finally, if you would like to request a quote for Critical illness cover UK insurance from our trusted partners, please contact Broadbench. When you take this step, you can book an appointment with one of their expert Contractor protection advisers.

I have also written other extensive articles that cover Contractor Mortgages, contractor insurance in general and, Relevant Life Insurance for contractors.

Link to Contractor Advice UK group on


If you would like to request a quote for critical illness insurance, please complete the form below.

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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: March 13th, 2021 / Categories: Finances, Finances post, Financials /

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