Critical illness cover is an insurance policy that pays out a lump sum if the policyholder is diagnosed with a serious illness specified in the policy terms, such as certain cancers, a heart attack, or a stroke.
It’s often taken out alongside a mortgage, since a serious illness diagnosis can affect a household’s ability to keep up with repayments, though critical illness cover is a separate product to life insurance and to income protection, and pays out only for the specific conditions listed in the policy — not for every illness or injury. Policies vary between providers in terms of which conditions are covered and how they’re defined, so it’s worth comparing options and getting advice on what level of cover is appropriate for your circumstances.