Money worries can quickly follow, especially if you can’t work for months at a time. That’s where a type of insurance protection called critical illness cover can make all the difference, as one woman recently found out.
When 40-year-old single mum Urszula Roman-Kamphaus was diagnosed with breast cancer last year, her life was turned upside down.
The Glasgow-based academic, who lives with her 14-year-old daughter, went from an active, healthy lifestyle to suddenly facing surgery, treatment and uncertainty about the future. “I love cycling, swimming and hiking. Because I saw myself as fit and healthy, being diagnosed with breast cancer came as a huge shock.”
After spotting a small dimple on her breast at the gym, Urszula went to her GP, who referred her for further tests. A biopsy confirmed her fears. “I was terrified. I kept thinking about my daughter. It was very emotional for both of us.”
Once the diagnosis sank in, Urszula contacted her insurer Beagle Street to make a claim on her critical illness cover policy.
The process was straightforward, and within weeks she received a £15,000 payout. “I’d taken the policy out when I bought my mortgage in 2019. I was paying £14 a month, the cost of a few coffees, and never thought I’d need it.”
The payout allowed her to focus on recovery instead of worrying about money, as the diagnosis brought extra costs. “I spent more on healthy food and supplements. The money made it possible to look after myself and my daughter properly,” she said.
Now, she’s back at work and feeling better. “Without that policy, I could have easily ended up in debt. We even managed a lovely holiday in Italy, which helped us heal emotionally. You don’t realise how much you miss everyday life until it’s taken away.”
Critical illness cover is designed to pay a tax-free lump sum if you’re diagnosed with a serious medical condition such as cancer, stroke or heart attack.
Policies often cover dozens of illnesses, some more than 100, but definitions vary, so it’s vital to check the details.
Edward Durell, managing director at Cover Direct, said insurers have a great track record of paying out, with around 98% of claims paid. “What matters most isn’t just price. It’s how clearly the conditions are defined and how well the policy matches your needs.”
Premiums depend on age, health and the amount of cover. For a 40-year-old non-smoker in good health, £100,000 of combined life insurance and critical illness cover over 20 years costs around £50 a month, according to figures from Beagle Street.
People are actually far more likely to suffer a serious illness than die young, so critical illness cover typically costs more than life insurance. Couples can buy joint policies, but separate cover often offers better value.
There are millions of policies in force in the UK and approximately half a million people buy a new policy each year
Before taking out a policy, think carefully about how much cover you’d need to pay off debts, replace lost income or support your family. Compare prices online, check how many conditions are covered, and speak to an independent adviser if you have health issues.
As Urszula’s experience shows, a relatively small monthly premium can make a huge difference when life takes an unexpected turn.
