What is critical illness cover?
Critical illness cover pays a tax-free lump sum if you are diagnosed with one of the specific conditions listed in the policy and survive a set period, usually 14 days. It pays on diagnosis, not on death, and the definitions vary meaningfully between insurers.
The bulk of claims concern cancer, heart attack and stroke, but policies list dozens of conditions and the wording determines everything. Two policies naming the same condition can respond quite differently, so the definitions matter more than the headline list length.
Many insurers now pay partial amounts for less severe presentations, and most include children's cover as standard. Cover is commonly bought alongside term life insurance, either as an additional sum or on a combined basis where the first claim ends the policy.
Non-disclosure at application is the main reason claims fail. Answer the medical questions completely, even where they seem irrelevant.