Critical Illness

What is Critical Illness

Critical Illness Cover (also referred to as CIC) will pay you a tax free lump sum if you are diagnosed with an illnesses specified by the policy. These usually include certain types of cancer, heart attack, stroke, brain tumour and others.

This money is usually used to fund expensive medical bills, and can also be used to clear debts to make your finances easier to manage whilst you are not earning.

Types of Critical Illness Cover

Types of critical illness cover

Description of cover

  • Level Term
The same level of cover is maintained throughout the policy term. This type of cover can be used in conjunction with an interest only mortgage.
  • Decreasing Term   Assurance
The policy pays out an amount (sum assured) which reduces throughout the term of the plan and is mainly used to protect repayment mortgages.
  • Definition Based
The standard Critical Illness Policy will pay out the chosen sum assured on diagnosis of an illness specified in the providers list of defined illnesses.
  • Severity Based
This new form of Critical Illness Policy pays out on a lot more types of illness but the size of the payout is proportional to the severity of the condition claimed for.

Plans may not cover all the definitions of a critical illness. The definitions vary between product providers and will be described in the key features and policy documents if you go ahead with a plan.    

These plans have no cash in value at any time and will cease at the end of the term. If premiums are not maintained, then cover will lapse.



Simply visit our contact page and we will call you to discuss your mortgage and or protection requirements.

The levels and bases of taxation and UK interest rates are subject to change.

The guidance contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK. Principal: Peter Martin Dronfield.