CRITICAL ILLLNESS COVER – Is it the most Confusing of all Insurance plans??

Do I need critical illness cover?

A man aged between 20 and 40 has a 1 in 4 chance of suffering a critical illness by age 65

A woman aged between 20 and 40 has a 1 in 5 chance of suffering a critical illness by age 65

1 in 2 people born after 1960 will be diagnosed with cancer in their lifetime


We can read all the statistics in the World and as we get older we all know people who have suffered a serious illness.  We understand the big strain it can have on families.  We know it could happen to us BUT …


Vincent suffered with persistent itching of the skin all over his body.  He had suffered with Psoriasis over the years so thought nothing of it.  When he noticed a swelling in his lymph node he went to the Doctor and was diagnosed with non-Hodgkin’s lymphoma. He was only 43.

He had a critical illness plan that he had taken out the year before.  He also had an endowment plan taken out 15 years ago with a small amount of critical illness cover included within it.

He made a successful claim on both plans and received a pay-out of £50,000.

He went through Radiotherapy and Chemotherapy and a small operation and was well on the road to recovery.

Everyone is different.  For some a tax-free pay-out of £50,000 can make a huge difference.  For others, you may want more.




£50,000 might not be a very large pay-out but made a huge difference to someone as frugal as Vincent.

After the treatment, Vincent was able to re-assess his lifestyle and decided that rather than continue in a job that he found difficult and stressful, with that extra lump sum – they could afford to move into a bigger home.  Vincent’s wife’s childminding business could grow and bring in enough income for both of them.

So, Vincent’s stress and psoriasis also cleared up as well.






Vincent is now 50 and in very good health. He understands the impact an injection of cash at any age can have.

Unfortunately, because he has had a claim and his critical illness plan has stopped, he can’t easily get cover in the future.

Vincent’s wife, Sandra, already has a plan but she has changed this.

She now has a more comprehensive plan.

Her plan on claim would pay out on the severity level of the condition and the affect it has on her lifestyle.

This means that on her cover of £100,000, that on claim she would get the full sum assured paid out on any of the “normal” 40+ major conditions such as Heart attack, Stroke, Major organ transplant, advanced cancer, kidney disease.  BUT if she is diagnosed with say a less advanced cancer or a silent stroke or blindness in one eye or one of many other less severe conditions, she could claim multiple times and could receive a proportionate pay-out of £5,000 or £10,000 or £25,000 or £50,000 or £75,000 or £100,000.

This information is provided strictly for general consideration only. No action must be taken or refrained from based on its contents alone. Accordingly, no responsibility can be assumed for any loss occasioned about the content hereof and any such action or inaction. Professional advice is necessary for every case.

Kerina Bradburn MLIBF DipFA