Critical illness cover
Critical illness cover pays a tax-free lump sum if you’re diagnosed with one of the serious conditions named in the policy. Many borrowers use it to clear the mortgage outright, securing the home against a health shock.
What it does
On diagnosis of a specified serious condition — such as certain cancers, heart attack or stroke — the policy pays a one-off, tax-free lump sum. There are no restrictions on how you use it, but it’s often set at a level that would repay the mortgage in full.
It’s frequently arranged alongside the mortgage for exactly that reason.
Why pair it with your mortgage
A serious illness can stop your income and add costs at the same time. Clearing the mortgage removes the largest fixed outgoing, letting you focus on recovery rather than repayments.
- Lump sum, paid tax-free on diagnosis.
- Can be set to match your outstanding mortgage balance.
- Often combined with life cover in one policy.
What to check
- Which conditions are covered, and the severity definitions.
- Whether it’s combined with, or separate from, life cover.
- Children’s cover, which many policies include.
Critical illness cover, answered
Is critical illness cover the same as life insurance?+
No. Life insurance pays out on death; critical illness pays a lump sum if you’re diagnosed with a serious condition and survive. Many people hold both, sometimes combined in a single policy.
How much cover should I take?+
A common approach is to match the mortgage balance, so the loan can be cleared on diagnosis. Some choose more to cover lost income and treatment costs. We help you size it sensibly.
Does it cover every illness?+
No — only the specific conditions and severities defined in the policy. Reading those definitions matters, which is why advice helps you compare like for like.