Support for the moments life changes suddenly.
The short answer
Life insurance with critical illness cover pays a lump sum if you die or are diagnosed with a serious illness listed in the policy, such as certain cancers, heart attacks or strokes, during the term. Combined policies usually pay once, whichever happens first. It costs more than life cover alone because the insurer is more likely to pay.
Who this cover may suit
- Your family would struggle if you were seriously ill and unable to work for a long time.
- You want the option to clear a mortgage on diagnosis, not only on death.
- You are self-employed or have little sick pay from an employer.
- You want one policy covering both death and serious illness.
When to consider another option
- You want a regular income if you are off sick for any reason — that is income protection.
- Your budget only allows for one type of cover — life cover alone may meet the most essential need. See term life insurance.
- You want two separate payouts — look at standalone critical illness cover alongside life cover.
How it works
Tell us about you
A few simple questions about your age, health and what you want to protect.
Choose amount and term
Pick how much cover you want, its shape and how long it should last.
Review real options
See options based on your answers, with a real person to help if you want one.
How combined life and critical illness cover works
Each insurer publishes a list of conditions it covers and a definition of each. If you are diagnosed with a listed condition that meets the definition during the term, the policy pays out. Many policies also pay smaller amounts for less severe conditions. MoneyHelper explains the main types of protection cover. [2] The NHS publishes plain-English information on conditions such as cancer, which helps explain what a diagnosis can involve. [13]
| Combined (life + CI) | Life and separate CI policy | |
|---|---|---|
| Number of payouts | One, whichever comes first | Up to two |
| Relative cost | Usually lower than two policies | Usually higher |
| After a CI claim | Policy usually ends | Life cover continues |
| Flexibility | One sum, one term | Different sums and terms possible |
What to check in the definitions
Definitions matter more than the length of the list. Check how each insurer defines the most common claims — cancer, heart attack and stroke — and whether children’s cover is included. Answer every medical question fully: careless mistakes can reduce a payout. Our medical questions guide explains what insurers ask.
A couple adding critical illness cover
Fictional example: Kate, 41, self-employed, and Dev, 43, a £190,000 repayment mortgage over 20 years. No prices are shown because real premiums depend on underwriting.
- Mortgage layer
- Decreasing life and critical illness cover
- Why
- Kate has no sick pay, so a diagnosis could stop the household income
- Family layer
- Level life cover for Dev and Kate separately
- Check
- Cancer, heart attack and stroke definitions compared
The mortgage could be cleared on diagnosis or death. See our self-employed guide for more on gaps without employer benefits.
Trusts and tax
Critical illness payouts are usually paid to you, the person diagnosed. Life payouts outside a trust usually join your estate and may count towards Inheritance Tax above £325,000. [4] HMRC explains how trusts are taxed. [5] Our trusts guide explains how trusts handle combined policies.
Life and critical illness cover at a glance
What works well
- Pays on a listed diagnosis, not only on death.
- Can clear a mortgage while you recover.
- One policy and one premium.
What to watch
- Costs more than life cover alone.
- Only listed conditions meeting the definition are covered.
- Combined cover usually pays once, then ends.
The ONS publishes inflation data worth bearing in mind if you choose a fixed sum over a long term. [9]
The FCA’s market study into pure protection found that competition generally works well, while noting many households remain underinsured. [3] Answer every application question accurately: under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care not to misrepresent. [6]
Employer death-in-service cover is valuable, but MoneyHelper notes it usually ends when you leave the job. [7] If a claim is ever disputed, the Financial Ombudsman Service handles complaints about insurers free of charge. [8]
Keep exploring
- Life insurance medical questions and underwriting explained
- Life insurance for the self-employed: protecting income without an employer
- How much does term life insurance cost in the UK?
- Life insurance and your mortgage: what cover do you need?
- Term life insurance
- Mortgage life insurance
- Self-employed and directors
- Medical conditions
Frequently asked questions
What is life insurance with critical illness cover?
It is a term policy that pays a lump sum if the insured person dies or is diagnosed with a serious illness listed in the policy during the term. The list usually includes certain cancers, heart attacks and strokes, along with many other conditions, each with a specific definition. Most combined policies pay once, on whichever event happens first, and then end. Because a claim is more likely than with life cover alone, premiums are higher. It is often used to protect a mortgage or household income against both risks.
What illnesses are covered by critical illness insurance?
Each insurer sets its own list and definitions, but most policies cover the conditions behind the majority of claims: certain cancers, heart attacks and strokes. Many also include conditions such as multiple sclerosis, kidney failure, major organ transplants and some neurological conditions. Some pay a partial amount for less severe conditions, such as early-stage cancers. Not every diagnosis qualifies, because the condition must meet the policy definition. Compare how insurers define the most common conditions, rather than counting how many conditions are listed.
Is critical illness cover worth it?
It can be valuable if a serious illness would put your household under financial strain, for example if you are self-employed, have limited sick pay or have a mortgage your family could not cover on one income. A lump sum could clear debts, pay for adaptations to your home or let you take time to recover. The trade-off is cost, which is higher than life cover alone. Some people choose a smaller critical illness sum alongside a larger life policy to balance protection and budget.
Should I get combined or separate critical illness cover?
A combined policy pays once, whichever happens first, which usually makes it lower in cost than two separate policies. The drawback is that if you claim for a critical illness, the policy ends and you are left without life cover, possibly at a time when getting new cover would be difficult. A separate critical illness policy alongside life cover can pay out twice and lets you choose different amounts and terms. It usually costs more. The right choice depends on your budget and how much protection your family needs.
Does critical illness cover pay out for cancer?
Most policies cover cancer, and it is the most common reason for critical illness claims. However, not every cancer diagnosis qualifies for a full payout. Policies usually define cancer by severity and spread, and many exclude or pay only partially for some early-stage or less invasive cancers. Some policies include additional payments for certain early cancers. Read the cancer definition closely before you buy and compare insurers. The NHS provides plain-English information about different types of cancer if you want to understand the terms used.
Do I have to declare my medical history for critical illness cover?
Yes. You must answer every question on the application honestly and take reasonable care not to give misleading information, as set out in the Consumer Insurance (Disclosure and Representations) Act 2012. Critical illness applications usually ask more detailed medical questions than life-only cover, including family history. If you make a careless or deliberate mistake, the insurer may reduce or refuse a claim later. If you are unsure whether something is relevant, it is usually safer to mention it. Our medical questions guide explains what insurers typically ask.
Sources
- Association of British Insurers — Protection insurers pay out £7.84 billion in claims in 2025 (2026-06-29)
- MoneyHelper — What is life insurance? (2026-09-28)
- Financial Conduct Authority — MS24/1.5 Market Study into the Distribution of Pure Protection Insurance Products: Final Report (2026-09-21)
- GOV.UK — How Inheritance Tax works: thresholds, rules and allowances (2026-09-28)
- HM Revenue & Customs — Trusts and Inheritance Tax (2010-11-08)
- legislation.gov.uk — Consumer Insurance (Disclosure and Representations) Act 2012 (2012-03-08)
- MoneyHelper — Life insurance through work (2026-09-28)
- Financial Ombudsman Service — Complain about a financial business (2026-09-28)
- Office for National Statistics — Inflation and price indices (2026-09-17)
- GOV.UK — Bereavement Support Payment (2026-09-28)
- legislation.gov.uk — Income Tax (Earnings and Pensions) Act 2003 (2003-04-10)
- GOV.UK — Funeral Expenses Payment (2026-09-28)
- NHS — Cancer (2026-09-28)
- GOV.UK — Trusts and taxes (2026-09-28)