Finance glossary
Critical Illness Cover
Also known as: Critical illness insurance, CIC
In simple terms
Critical illness cover pays a tax-free lump sum if you are diagnosed with one of the serious illnesses listed in the policy, such as certain cancers, a heart attack or a stroke.
On this page
What does critical illness cover mean?
Critical illness cover pays a one-off, usually tax-free lump sum if you are diagnosed with one of the specific serious conditions defined in the policy during the term. It is often bought alongside life insurance.
Only the conditions listed — and meeting the policy’s exact definitions — are covered.
How critical illness cover works
You choose a cover amount and term and pay a regular premium. If you are diagnosed with a qualifying condition that meets the policy definition, you claim and receive the lump sum, which you can use however you wish.
Definitions and the list of conditions vary between insurers, so two policies at the same price can offer very different protection.
How could this affect me?
The money can help cover lost income, treatment costs or mortgage payments during a serious illness. But claims can be declined if the condition is not listed, is an earlier stage than defined, or was not properly disclosed.
Taking reasonable care to answer medical questions accurately is essential to being paid.
Things to watch out for
- Only listed conditions meeting exact definitions are covered.
- Policies vary a lot — compare definitions, not just price.
- Not disclosing medical information can invalidate a claim.
Know your rights
- Under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care to answer the insurer’s questions honestly.
- FCA rules require claims to be handled promptly and fairly; you can complain to the Financial Ombudsman Service.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Critical illness insurance (opens in a new tab). Accessed 22 Aug 2026.