Critical illness cover (CIC) is designed to provide a lump sum in order to help you to maintain your financial security in the event you are diagnosed with a critical illness.
The tax free lump sum paid out is normally used to help with the cost of recovery or adjustments that might be needed to help you to adapt financially. For example, you might use the payment for private medical treatment, to pay-off your mortgage, or to make alterations to your home. Ultimately, you decide what to spend the money on.
Critical illness insurance policies usually only pay out once, so are not a replacement for income. If you're interested in finding out more about specifically protecting your income then you should go to our Income Protection Fact Centre.
If you're not sure about how much critical illness insurance you might need for your current situation, you can use our interactive online research tool, the Finance Navigator.
Next: Why do people take out critical illness insurance policies?
