Let's Talk Critical Illness Cover

Critical illness cover is a protection policy which can either be taken as standalone cover or in conjunction with other protection products. You choose your cover amount and term, which will then pay a tax-free sum if you experience one of the conditions specified in the policy.

Historically a critical illness policy will cease after a successful claim, however numerous providers have altered criteria in recent years which may allow for multiple claims, depending on their severity.

The chosen cover amount and term will of course be a key factor in determining monthly cost, but there are several others:

Age- Fundamentally, the younger you are the cheaper your cover is likely to be. With age you become more susceptible to numerous conditions and this is reflected in monthly cost.

Smoker status- If you are a smoker or have recently quit smoking, your premiums will be higher than someone who has never smoked. Many providers have made smoker status a more interactive question in recent times, with premiums reducing the longer you have been smoke free. Vapes and nicotine replacement products also fall under the umbrella of smoking for underwriting purposes.

Current health status- If you have any existing medical conditions, or family history, your premiums may be affected. Providers will ask extensive medical history questions at application stage to consider any cost impact.

We think of the above as being more 'fixed factors' when it comes to cover cost. The below are more flexible as they're optional extras that can be included to enhance your policy offering.

Decreasing, level or increasing- Opting for decreasing cover will reduce your benefit amount at a rate pre-selected by you at application. Increasing cover can also be a set % or linked to inflation and means your cover amount and monthly premium will go up each year. This is best for ensuring cover retains value over time.

Enhanced definitions- A number of providers now offer their own variations of 'enhanced' cover, which increases the number of qualifying conditions and severity-based payments.

Children's cover- This covers your dependents for critical illness conditions up to adulthood. Some providers also include child-specific conditions that aren't available with adult policies.

Fracture cover- Designed to mitigate unexpected costs resulting from bone fractures or selected ligament injuries. Most commonly offers a maximum pay out each year of £2,000-£6,000 per claim, at an additional cost.

Waiver of premium- Allows you to stop making your monthly payments due to illness or injury, without invalidating the policy. Some providers include this automatically after a set period, with others charging a premium.

Hospitalisation benefit- Will pay out due to spending an extended period in hospital. Some providers include this as a lump-sum and others calculate it as a daily amount, such as £100 per night after 6+ nights in hospital.

Other policy additions include things like global treatment cover and digital health services, which vary more significantly depending on chosen provider. Our advisors are on hand to discuss their benefit to you as part of the recommendation process.