This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

Critical Illness Insurance Taxation

If you are looking to insure yourself against a critical illness, current taxation rules allow the proceeds of any claim to be paid tax free, allowing you to receive a full payout of the sum assured as agreed in the policy wording. Under current tax rules because critical illness contracts are term polices in force for a set period e.g. 20 years and the policy has no surrender value at any time they are deemed as "qualifying polices" and will be exempt from income and capital gains tax.


Life insurance companies will submit standard policy wordings to HMRC so that they can be certified as qualifying and will also ensure that any adjustments made to the policies during the policy term e.g an increase in the sum assured in line with RPI will not compromise the tax status. 


For quotes and advice on critical illness insurance see below:

Critical Illness Insurance Quote Services
Quote ServicesLife Insurance QuotesCritical Illness Insurance QuotesIncome Protection QuotesFamily Income Benefit QuotesGet Quotes
YesYesYesYesGet Quotes >
  • Quotes from leading UK Critical Illness Insurance Providers
  • Fill in one simple form and an expert will call you back
  • No obligation quote service
  • Get the right cover for your needs