Critical illness cover is a form of insurance that pays out a tax-free lump sum or capital instalments if you are diagnosed with an illness or medical condition specified in the terms of the policy.

Critical illness cover provides financial protection in the event of a serious illness by paying out a lump sum if the insured person is diagnosed with a specified condition and meets certain criteria, such as surviving a designated period after diagnosis. For example, a 25-year policy with a sum insured of £100,000 could provide vital support if a policyholder were to be diagnosed with cancer shortly after taking out the policy, as long as the condition is covered and the survival requirement is met, offering crucial assistance during challenging times.

It's essential to thoroughly review the key features and policy document of any critical illness plan, as definitions of what constitutes a critical illness can differ significantly between providers. Understanding these definitions will help ensure that you are adequately covered for the specific illnesses included in your policy.