Critical Illness Plan

A critical illness cover plan will provide a lump sum benefit if you are diagnosed with one of a specified list of illnesses such as heart attack or cancer, and survive a further 28 days. Full details of the conditions covered are shown in each provider’s Key Features documents, and can vary. If life assurance is included the sum assured will be payable only on the first of either death or diagnosis of one of the illnesses covered.

Critical Illness Plan

Joint or Single Life

The policy can be written on a single life basis, or on a joint life basis whereby the sum assured is payable if either policyholder should die within the policy term. It is only paid out on the first event.

How much does it cost?

Premiums for Critical Illness Cover Plans can be paid monthly, annually or by single premium. The most common is a monthly premium. The premium is determined by such factors as your age, gender and medical history.

Premiums can be guaranteed, which are fixed for the term of the policy, or reviewable, where the provider can adjust premiums, up or down, at regular reviews dependent upon factors such as their overall claims history. Cover ceases if premiums lapse.

Waiver of premium

This option ensures that the insurance company will meet your premiums, should you be unable to work due to an accident or illness for a continuous period of more than 6 months. In addition, waiver may apply if you are unable to carry out certain daily functions i.e. washing, cooking, mobility. The waiver will continue until you are well enough to return to work, attain age 60, or in the event of death, whichever is sooner.

Not all policies offer this facility.

What will I receive back?

There is no investment element to this type of policy therefore it will never acquire a surrender or maturity value. The only benefits paid would be on the diagnosis of a critical illness covered by the plan.


These policies can be written under Trust to ensure the sum assured is paid to your selected beneficiary and/or to mitigate inheritance tax liability.

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