You pay a monthly premium to an insurer, and if you're diagnosed with a specified critical illness within the period of cover you've chosen, the insurer will pay an agreed lump-sum to you and your family.
Depending on the provider and type of cover you've chosen, some policies will expire after you've received a payout for CIC. Others will give some payout and continue to cover you for your death until the end of the term, but these tend to be more expensive.
For this reason it's worth thinking about how you'd like to be protected with critical illness cover and in what circumstances. Be sure to check the policy wording for each insurer to properly understand the situations in which you'll receive a payout.
Be aware that critical illness cover will not cover all illnesses, and the critical illness would have to be one of those listed by the insurer in their policy. Monthly premium payments must be upheld to ensure the policy remains valid and like all term policies, if you do not die within the period, your policy will then expire.
This provides a fixed cash lump sum with no health questions and guaranteed acceptance if you're aged between 50 and 75.Find out more
Your cover is guaranteed for a set period of time and will pay out an agreed, fixed lump sum to your loved ones when you die.Find out more
Your cover will decrease over time at a predetermined rate, making it useful to work alongside a repayment mortgage.Find out more