Critical illness life insurance cover (also known as 'dread disease cover') is a policy that insures you should you suffer a critical illness. The critical illness must be a specified medical condition, such as cancer. The critical illness insurance policy will pay out a lump sum on the diagnosis of one of the specified medical conditions.
Critical illness insurance policies can be 'stand alone' in that you would take them out by themselves, or can be added on to whole of life, endowments or term insurance policies. This is particularly useful in the case of term insurance policies, where your survival of the term means that you receive no benefits. If during the term you are diagnosed with a critical illness, the cover will be vital.
A person taking out a critical illness insurance policy will pay level premiums. The amount of the premiums will depend on certain factors, such as age, whether or not you smoke, family history (many critical illnesses are hereditary), and the level of critical illness insurance cover required.
 View the Association of British Insurers Guide to Critical Illness Cover
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