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Critical Illness Cover UKWhat It Is, What It Covers & What It Costs
Understand critical illness cover — a tax-free lump sum if you are diagnosed with cancer, heart attack, stroke or other serious conditions. Compare standalone and combined policies.
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Book a Free ConsultationKey Facts: Critical Illness Cover
Critical illness cover pays a tax-free lump sum if you are diagnosed with a specified serious condition such as cancer, heart attack or stroke.
- -Average CI claim in 2024: £67,600 (ABI)
- -Total CI payouts in 2024: £1.3 billion, up 5% year-on-year (ABI)
- -89%+ of CI claims were paid in 2024 (ABI)
- -Cancer accounts for 58-62% of all CI claims (Aviva 2025)
- -1 in 2 people in the UK will develop cancer in their lifetime (Macmillan)
- -20% of life policies sold in 2025 included CI cover, up from 9% in 2020 (iPipeline)
What Is Critical Illness Cover?
Critical illness cover (CI cover) is a type of insurance that pays a tax-free lump sum if you are diagnosed with a serious medical condition specified in the policy. Unlike life insurance which pays on death, CI cover pays while you are alive — giving you money when you need it most to focus on treatment and recovery.
According to Macmillan Cancer Support, 1 in 2 people in the UK will develop cancer in their lifetime. The ABI reports that CI claims reached \u00a31.3 billion in 2024 (up 5% on 2023), with 89%+ of claims paid and an average payout of \u00a367,600.
The ABI Minimum Standards require all CI policies to cover at least cancer, heart attack and stroke as a baseline. Most modern policies cover 40-100+ conditions.
Standalone CI Cover
A separate policy that only covers critical illness. Pays out once on diagnosis. Does not include life cover. You choose the cover amount and term.
Combined Life and CI Cover
A single policy covering both death and critical illness. Pays out once — whichever event happens first. Cheaper than two separate policies but only pays once.
CI Accelerator (Rider)
CI added to an existing life insurance policy. The CI claim reduces the life cover by the amount paid. The cheapest way to add CI to existing protection.
Key Person Critical Illness
CI cover for businesses. Pays the company a lump sum if a key employee is diagnosed with a critical illness. See our <a href='/key-person-critical-illness'>key person CI guide</a>.
What Does Critical Illness Cover Include?
The ABI Minimum Standards for Critical Illness define the baseline conditions that all UK CI policies must cover. According to Aviva's 2025 Claims Report, the most common claims are:
Cancer (58-62% of Claims)
The most common CI claim by far. For women, breast cancer accounts for 53.3% of claims; for men, prostate (27.3%) and GI cancers (18.6%). Coverage typically includes most cancers but may exclude very early-stage or non-invasive cancers.
Heart Attack & Cardiovascular (15-20%)
The second most common cause. Includes heart attack, coronary artery bypass, heart valve replacement. Definition thresholds matter — check what counts as a 'heart attack' in each policy.
Stroke (5-8%)
Covers stroke resulting in permanent neurological damage lasting more than 24 hours. The definition of permanence varies between providers.
Other Conditions (15-25%)
Modern policies cover 40-100+ conditions including: multiple sclerosis, Parkinson's, kidney failure, major organ transplant, blindness, deafness, paralysis, and many more.
How Much Does Critical Illness Cover Cost?
CI cover is significantly more expensive than life-only cover because the probability of claiming is higher (you are more likely to be diagnosed with a critical illness during the policy term than to die). According to iPipeline data, 20% of life policies sold in 2025 included CI cover — up from just 9% in 2020.
Age
The biggest cost factor. A 30-year-old might pay £20-30/month for £100,000 CI cover. A 50-year-old could pay £80-150/month for the same amount.
Cover Amount
Higher cover = higher premiums. Most people choose £50,000-£200,000 of CI cover. Consider your mortgage, debts and living costs if you could not work.
Standalone vs Combined
Combined life and CI is cheaper than two separate policies but only pays out once. Standalone CI keeps your life cover intact.
Number of Conditions
Policies covering 100+ conditions cost more than those covering 40. However, the core conditions (cancer, heart, stroke) account for 85%+ of claims regardless.
Market Trend
According to <a href='https://store.mintel.com/report/uk-critical-illness-cover-market-report' target='_blank' rel='noopener'>Mintel</a>, the UK CI market expects 9%+ premium growth. 75,700 standalone CI policies were sold in 2023.
Trusted Sources & Further Reading
This critical illness cover guide references:
- Macmillan Cancer Support — 1 in 2 lifetime cancer risk
- ABI Claims Data 2024 — \u00a31.3bn CI claims, 89%+ paid, average \u00a367,600
- ABI CI Minimum Standards — What all policies must cover
- Aviva Claims Report 2025 — Cancer breakdown by type and gender
- iPipeline/Insurance Business UK — 20% of policies now include CI
- Mintel UK CI Report 2025 — Market size and growth
- FCA Pure Protection Market Study — FCA reviewing CI value
- MoneyHelper: Critical Illness Cover
Critical Illness Cover FAQs
What is critical illness cover?
Critical illness cover pays a tax-free lump sum if you are diagnosed with a specified serious condition such as cancer, heart attack or stroke. The ABI Minimum Standards require all policies to cover these three conditions as a baseline.
How much does critical illness cover pay out?
The average CI payout in 2024 was £67,600 (ABI). You choose your cover amount when you take out the policy, typically £50,000-£200,000. The payout is a tax-free lump sum.
Is critical illness cover worth it?
1 in 2 people in the UK will develop cancer in their lifetime (Macmillan). CI cover provides a lump sum to cover mortgage repayments, living costs and treatment expenses when your income may be reduced. Whether it is worth it depends on your savings, other protection, and risk tolerance.
What is the difference between life insurance and critical illness cover?
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