Whilst in many instances critical illness cover can be added to a standard term or whole of life assurance policy, it is also available as a stand alone product in it's own right.

Simply put, critical illness cover pays out an assured sum on the diagnosis of a critical illness.

Whilst the definition of a critical illness does vary from provider to provider, virtually all cover cancer, heart disease and attacks, strokes, major organ replacement and permanent disability.

It may also be possible to extend the cover to the assureds children, providing that they are under 18.

In terms of cost, critical illness cover does tend to be more expensive than simple lefe assurance, but the fact that often, as a result of an event covered by a critical illness policy, the assured may find it difficult to continue to work and therefore maintain the level of income to which they had become accustomed.

Finally, under current legislation, the lump sum payment would be paid without the penalty of tax, irrespective of the tax position of he assured.