If you’re self-employed, a contractor, or running your own business, here’s a hard truth: if you get seriously ill, no one is automatically paying you.
There’s no employer sick pay. No payroll department to fall back on. And unfortunately, illness doesn’t press pause on your mortgage, rent, or utility bills.
That’s why Critical Illness Cover (CIC) is more than just an insurance product — it’s your financial safety net if life suddenly throws you a curveball.
What Would Happen If You Couldn’t Work?
Imagine being diagnosed with a life-changing illness like cancer, a stroke, or a heart condition. Treatment and recovery could take months — even years. During that time, how would you:
- Pay the mortgage or rent?
- Keep up with business expenses?
- Support your family or dependents?
- Take time off without worrying about your income?
This is where Critical Illness Cover steps in — providing a one-off, tax-free lump sum you can use however you need to.
What Is Critical Illness Cover?
Critical Illness Cover pays out a single lump sum if you’re diagnosed with a serious illness defined in your insurer’s policy. That payout is yours to use — whether it’s to replace income, pay off debt, adapt your home, or simply give you space to focus on getting better.
It’s not means-tested. It’s not taxable. And you don’t need to be completely unable to work to claim.
For contractors, freelancers, and small business owners, this kind of policy provides much-needed income security during a time when you need it most.
What’s Covered?
Each policy lists specific conditions, but most insurers cover major illnesses such as:
- Heart attack
- Stroke
- Cancer (excluding early-stage)
- Multiple sclerosis
- Parkinson’s disease
- Organ transplant
- Alzheimer’s disease
- Traumatic head injury
- Permanent disability
Some policies also offer children’s cover as an add-on — providing a reduced payout if your child becomes seriously ill, so you can afford to step back from work to support them.
What Can You Use the Payout For?
Anything you like — because there are no restrictions. You might choose to:
- Pay your mortgage or rent
- Cover household bills while recovering
- Fund private treatment or home adaptations
- Take time off without worrying about money
- Replace lost business income while you’re out of action
The goal is simple: to relieve financial pressure during a medical crisis — so you can focus fully on your health and recovery.
CIC vs. Income Protection: What’s the Difference?
A lot of business owners confuse Critical Illness Insurance for Contractors with Income Protection — but they’re designed for different scenarios.
| Feature | Critical Illness Cover | Income Protection |
| Payout Type | One-off lump sum | Monthly payments |
| Triggers | Serious illness or condition | Any illness or injury that prevents working |
| Number of Claims | One | Multiple |
| Waiting Period | Immediate | 1 to 6 months (deferment) |
| Work Required to Claim? | No | Yes — must be unable to work |
For many contractors, having both types of cover offers the best protection — a lump sum to handle major life events, and monthly income support for other health-related absences.
How Much Cover Do You Need?
The amount you’ll need depends on a few personal and business factors:
- Your monthly expenses (mortgage, bills, childcare, etc.)
- Whether your business could run without you
- If you’d need to hire someone to cover your role
- How long you could survive on savings alone
Most people aim for enough cover to handle 1–2 years of living expenses or pay off a significant debt like a mortgage.
A financial adviser can help tailor the policy to suit both your budget and your exposure to risk.
How Do You Apply?
The application process is usually simple and can be completed in under an hour. It typically involves:
- Answering questions about your health and lifestyle
- Disclosing your medical history
- In some cases, a request for a GP report (with your permission)
At Broadbench, we work whole-of-market, meaning we search across the UK’s top insurers to find the best fit — especially useful if you have a pre-existing condition or complex health history.
Final Thought: Don’t Wait Until It’s Too Late
No one likes to think about serious illness — but ignoring the risk doesn’t make it go away. Especially when 1 in 2 people in the UK will be diagnosed with cancer in their lifetime.
As a self-employed person or small business owner, you don’t have the luxury of built-in sick pay. That’s why planning ahead with the right insurance is key.
If illness hits, make sure the bills still get paid — and your recovery is your only focus.
Ready to Build a Safety Net?
Get expert advice on Critical Illness Cover tailored to your business, lifestyle, and future goals.
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