This can be taken as an addition to a life cover policy or as a distinct policy in its own right. It provides a lump sum payment on the diagnosis of specified illnesses. Not all companies cover the same illnesses and their definition of illnesses vary. It is vital to check the policy wording. There is a high claim rate with this type of policy, which has resulted in it being more expensive than life cover.
The statistics show that cancer is the number one claim for critical illness cover.
This market is fast moving, with very significant differences in the level of cover offered by different companies. Partial payments for certain conditions have been introduced by some companies. An up to date analysis of the market is required to ensure that you get a policy that is appropriate to your needs.