Saturday 28th June 2025 is Insurance Awareness Day. We're supporting this by explaining what some of the different insurances are that we can help with and why you might consider them.
Why you might consider critical illness cover...
It’s worth us starting by explaining what would be considered a critical illness. Although this list is quite long and would vary between different insurance providers, it would typically include things like cancer, a heart attack, a stroke, and organ failure. Critical illness cover pays out a tax-free lump sum to provide financial support if you’re diagnosed with a critical illness detailed in your policy.
This is typically the time where we reflect and think it’s unlikely to happen to us but the reality in the UK is that on average someone is diagnosed with cancer at least every 90 seconds.* Cancer is the most common claim under a critical illness policy and in 2023, accounted for £777 million of the £1.2 billion claimed**. In the event of being diagnosed with a critical illness, this policy could give you some financial breathing space to know that you had one less thing to worry about at such an already difficult time.
Ideal for...
Whilst it’s recommended for anyone without a pre-existing condition who wants reassurance that they’d have some financial security in the effect of a diagnosis, there are certain circumstances that perhaps would make this cover a higher priority. These include a mortgage with only one income, a joint mortgage using primarily one income where cover could be arranged for the wage-earner, and a mortgage where the income was stretched to cover the loan amount or where the borrowing was the maximum amount available. It’s also a key consideration for those with dependents, which would include anyone who’d rely on your financial support, such as a spouse, child, or elderly parent.
Good to know about critical illness cover...
It’s really important that any existing medical conditions are disclosed when taking out a policy. The number of new individual claims paid out in 2023 was above 98%, with the common reasons for declined claims were policy holders not disclosing an existing medical conditions or not meeting the policy definitions.**
In addition to paying off your mortgage, and providing the level of cover was sufficient, money paid to you could be used to fund other essential considerations you might have. These might include covering your bills and other financial obligations if you’re unable to continue working, helping with treatment costs, making changes to your home to enable you to remain living there during treatment or long term, or perhaps funding someone to look after you or your dependents if you’re unable to.
If you’d like to understand more about critical illness cover, including the cost, we can provide you with a quotation and offer you advice to allow you to make an informed decision. Call us on 08000 38 37 36 or book an appointment today to talk to one of our advisers.
* Cancer statistics fact sheet | Macmillan Cancer Support
** Protection insurers pay out record £7.34 billion to support individuals and families | ABI
