A critical illness policy pays out a tax free lump sum on the diagnosis of certain critical illness. Most policies will pay out following the diagnosis of heart attack, renal failure, cancer, paralysis, major organ transplant and coronary artery bypass surgery as well as other as a range of other conditions. Over the years the number of diseases covered by a typical policy has increased to more than 25.

With rapid medical advances the chances of surviving a major illness are greater than ever. However, the financial consequences of suffering a major life changing illness can be very substantial. The one-off payment from this type of policy is designed to help you to cope with these costs which will typically include adapting your home or car and/or undertaking training for a different occupation.

Critical illness can be taken out on its own or included in ones’ mortgages protection policy to remove one’s mortgage payments from your affairs should you suffer such an illness.