What is critical illness cover through work?

The short answer

Critical illness cover pays you a tax-free lump sum if you're diagnosed with one of a list of serious medical conditions — typically including most cancers, heart attacks, strokes, multiple sclerosis and major organ transplants. Some employers provide it as a workplace benefit, either free or at a discounted group rate.

How it differs from income protection

The two are often confused, but they solve different problems. Income protection pays a monthly income because you can't work, and keeps paying while that's true. Critical illness pays a one-off lump sum because of a diagnosis — even if you recover quickly and go straight back to work. The lump sum is yours to use however helps most: paying down the mortgage, covering treatment or home adaptations, or simply buying time off to recover without money pressure.

Why getting it through work is valuable

Group schemes arranged by employers often don't require medical underwriting — meaning you may be covered without health questions that could make a personal policy expensive or unavailable, especially if you have a pre-existing condition. The cover amount is usually a fixed sum or a multiple of salary. Like death-in-service, it normally ends when you leave the job.

The fine print worth knowing

The exact list of covered conditions varies a lot between policies, and definitions matter — some early-stage or less severe forms of a condition may not qualify, and policies commonly require you to survive a short period after diagnosis before paying out. If an offer includes critical illness cover, ask for the cover amount and the conditions list. Some schemes also let you add a partner or children for a small cost.

How OfferWise treats it

Toggle critical illness on for an offer in OfferWise and it counts towards the offer's score — a benefit that would cost real money to buy privately is genuine added value in a package.

Comparing job offers? OfferWise scores every offer on salary, pension and protection benefits like this one — free.