Cover for the financial impact of a serious illness
A serious diagnosis can affect much more than your health. It can interrupt your income, increase household costs and make existing financial commitments harder to manage. Critical illness cover is designed to pay a cash lump sum if you are diagnosed with a condition covered by your policy and your claim meets the insurer’s definition.
TLA Finance can help you understand the differences between policies, decide how much cover may be appropriate and arrange protection that reflects your circumstances, priorities and budget.
From Amersham, TLA Finance supports clients in Buckinghamshire, London, the Home Counties and across the UK.
Cover is subject to eligibility, underwriting, policy definitions and exclusions. Claims must meet the policy terms. If premiums are not maintained, cover may end. Most protection policies have no cash-in value.
What is critical illness cover?
Critical illness cover is an insurance policy that may pay a one-off lump sum after a valid diagnosis of a specified serious illness or medical condition. The conditions covered, the medical definitions and any severity requirements vary between insurers and policies. A diagnosis alone does not automatically mean a claim will be paid: it must meet the exact definition in the policy terms. Cover can be arranged on its own or alongside life insurance.
The payout is commonly used flexibly rather than being restricted to one purpose, subject to the policy terms. For an individual policy, benefits are generally paid free of UK income tax, although tax treatment depends on personal circumstances and may change.
What could a payout help with?
The right level of cover depends on the financial gap a serious illness could create. A payout may help you:
You do not need to cover every possible cost. Advice can help you prioritise an affordable level of protection rather than choosing a figure without reference to your mortgage, income, savings, employer benefits and family responsibilities.
How does critical illness cover work?
Which illnesses are covered?
Policies often include conditions such as certain cancers, heart attacks and strokes, but the number and wording of conditions vary. Some policies also include or offer additional payment features, partial payments, children’s cover or extra benefits. More listed conditions do not automatically make a policy better: the definitions, severity thresholds, exclusions, claim wording and relevance to your needs are equally important. Important limitation: Critical illness insurance does not cover every illness, every diagnosis or every stage of a condition.
Always read the insurer’s policy summary and full terms. A recommendation should explain the main features and limitations relevant to you.
What affects the cost?
Premiums can be affected by factors including your age, health and medical history, smoking or nicotine use, occupation, lifestyle, amount of cover, policy term and the type of cover selected. The insurer may offer standard terms, charge a higher premium, apply an exclusion, postpone a decision or decline cover. Any quote is subject to a completed application and underwriting. A lower premium is not the only consideration.
We look at the suitability of the cover, the definitions and features, the insurer’s terms and the overall cost before making a recommendation. We will explain the basis of our advice and any relevant limitations.
Who might consider critical illness cover?
Critical illness cover may be relevant if a serious illness would create a meaningful financial shortfall. This can include homeowners with a mortgage, parents or carers, people with limited sick pay, self-employed clients and households relying heavily on one income. It may also be worth reviewing after a property purchase, remortgage, marriage, birth, change of employment or material change in income or borrowing. Whether it is suitable depends on your needs, existing policies, employer benefits, savings, affordability and health.
It is not automatically right for everyone.
Critical illness cover, life insurance and income protection
These policies solve different financial problems and can sometimes be combined. Advice should start with the risks you need to cover, rather than assuming one product replaces another.
Critical illness cover
A diagnosis meeting a covered policy definition may trigger a lump sum to help manage the financial impact of a specified serious illness.
Life insurance
Death during the policy term, subject to the policy terms, may trigger a lump sum or regular benefit to support beneficiaries or help with liabilities.
Income protection
Inability to work because of illness or injury, subject to the policy definition, may trigger a regular replacement income after the deferred period while a valid claim continues.
Why policy comparison and advice matter
Critical illness policies can look similar at first glance, but their definitions, additional benefits, exclusions and underwriting outcomes can differ. TLA Finance will discuss your needs, existing arrangements and budget, explain the recommended policy and provide the documentation you need to make an informed decision.
The availability and terms of cover depend on your circumstances and the insurer’s underwriting decision. We do not guarantee acceptance or claim payment.
Ready to review your protection?
A short conversation can help establish what you already have, where the financial gaps may be and whether critical illness cover should form part of your protection plan.
Important information
Critical illness cover pays only for conditions and circumstances covered by the policy and only when the insurer’s definition is met. Exclusions, severity requirements and survival periods may apply. You must answer application questions accurately and completely. If premiums are not maintained, cover may end. Most protection policies have no cash-in value. Do not cancel existing protection until any replacement policy is fully in force and you have understood the differences in cover, exclusions, cost and terms.
Frequently Asked Questions
Does critical illness cover pay for any serious illness?
No. It pays only when the diagnosis and circumstances meet a condition definition in the policy. Definitions, severity requirements, exclusions and additional benefits vary between policies.
Is critical illness cover the same as life insurance?
No. Life insurance is designed to pay on death during the policy term, subject to its terms. Critical illness cover is designed to pay following a valid diagnosis of a specified condition. The two can be arranged together or separately.
How much critical illness cover might I need?
That depends on the financial effect a serious illness could have. Relevant factors may include your mortgage, household bills, income, savings, employer benefits, dependants and the amount you can comfortably afford.
Can I get cover if I have an existing medical condition?
Possibly, but it depends on the condition and the insurer’s underwriting. You may be offered standard terms, a higher premium, an exclusion or different terms, or the insurer may postpone or decline cover.
Will a policy pay for cancer, a heart attack or a stroke?
Many policies cover specified forms of cancer, heart attack and stroke, but not every diagnosis or level of severity will meet the policy definition. The precise wording must be checked.
Is the payout tax-free?
For a personally owned policy, benefits are generally paid free of UK income tax. Tax treatment depends on circumstances and may change, so obtain tax advice where needed, particularly for business-related arrangements.
What happens if I stop paying the premiums?
The policy may lapse and the cover will end. Protection policies normally have no cash-in value, so you may receive nothing back.
Should I replace an existing critical illness policy?
Only after comparing the old and new cover carefully. A replacement may have different definitions, exclusions, cost or underwriting terms. Do not cancel existing cover until the replacement is fully in force and the differences have been explained.
Speak to TLA Finance
Talk through the cover you need for your family and financial commitments.
Request a critical illness cover review
Provide your basic contact details and select your preferred time and method of contact. We will explain how any further information should be supplied securely.
Please do not include medical, health, genetic, bank-account or confidential business information in this general enquiry form.
