• Most providers will cover seven core conditions, these include:
• Cancer
• Heart Attack
• Stroke
• Coronary artery by-pass surgery
• Kidney failure
• Major organ transplant
• Multiple Sclerosis

Policies vary widely in the non core illnesses they cover, which in some cases is up to 49 illnesses, so you should not always opt for the cheapest plan, because it will offer only a limited number of illnesses.

If you have children, many providers will include childrens cover as standard within the policy, this cover is usually capped at 25% of the total cover or £25000.

A Critical Illness policy will have a survival period clause that states should you be diagnosed with a critical illness, you have to survive between 10 to 28 days (depending on the provider) in order for the plan to pay out. By including life insurance, should you die before the survival period is reached, the policy will payout regardless! 

More and more providers are now including severity based payments. This is where plans pay out a proportion of the sum assured, depending on the severity of the diagnosis, and continue to provide cover for the more serious conditions. Breast cancer and prostate cancer are two typical cancers where severity payments can give an advanced payment of between 20 to 25% of your sum assured, usually up to a limit of £25000.

The main features of Critical Illness cover are:

• Policy can be set up as Own Life / Joint Life
• Benefit is payable on diagnosis of a specified illness.
• Premiums can be guaranteed to remain the same, or reviewable by the provider, usually after the 5th policy anniversary.
• Cover can be combined with term assurance, and be either level term or decreasing term.
• Over 40 illnesses can be covered

Please note that this type of insurance has no surrender value, and no money is paid out if you survive the policy term.

Serious Illness Cover pays out a tax-free lump sum and will pay out a percentage of your cover amount, depending on how severe your condition is.

This means they will pay out on a wider range of illnesses. You have a choice between Primary Serious Illness which covers up to 102 conditions, or Comprehensive Serious Illness cover which will cover up to 166 conditions. If you are diagnosed with one of the conditions, you will be paid a cash sum. The amount payable is based on the severity of your condition.