Critical Illness Insurance

How critical illness cover works

Critical illness insurance pays a tax-free lump sum if you are diagnosed with a specified life-threatening or debilitating condition covered by the policy. Conditions and claim definitions vary between insurers.

Cover is often added to life insurance, but it can also be arranged separately. Policies usually pay out only once and do not replace regular income. The proceeds can be used towards a mortgage, medical treatment, household costs or other priorities.

Review existing cover carefully

If you already have critical illness insurance, think carefully before cancelling it and taking out a replacement. A change in health since the original policy began could affect the cover available under a new plan, and pre-existing medical conditions may be excluded.

This information provides a general appreciation of the topic and is not personal advice. Policy definitions, terms and exclusions vary by insurer.