Critical Illness Insurance cover for Contractors

Why do contractors need critical illness insurance? Critical illness cover is designed to pay out a lump sum on diagnosis of a range serious illnesses, unlike life insurance which pays out only on death.

A cash lump sum helps contractors ease their financial worries whilst undergoing treatment and recuperation from a serious illness. The last thing you need when recovering is the stress of unpaid bills, so this can really give contractors the reassurance they need to support themselves and their families financially should they become extremely unwell.

Key features of critical illness insurance for contractors

  • A tax free lump sum of money paid straight into your bank account at a time when you need it most
  • Can be designed to pay off your mortgage or give you support to cover any unexpected costs associated with a debilitating or life changing illness
  • Typically covers between 40-99 conditions
  • Freelancer Financials will find you the right policy to suit your individual circumstances

How does critical illness insurance for contractors work? 

Contractors can be subject to various work related pressure that can take a serious toll on their health. Lack of mobility during the working day, rushed breaktimes and the stress associated with responsibilities and invariably tight deadlines can all have an impact on a previously healthy individual.

Such lifestyle related illness could have a great impact on an independent professionals’ financial health, and critical illness insurance lump sum payouts are designed to help reduce this impact.

Many illnesses would have been a death sentence 10-15 years ago but thanks to medical advances and a greater understanding of our health, these illnesses are often treatable and sometime even curable.

However, these same illnesses can leave you in a reduced state of health. For a regular monthly premium a contractor can arrange for a lump sum to be provided on diagnosis of such an illness. The funds can be spent as you choose for example to settle a mortgage, pay for a period of convalescence or even pay for alterations needed to allow you to stay in your home.

This cover goes hand in hand with income protection which pays a monthly income in event of illness, but which would stop once you were assessed as having made a satisfactory return to health.

The lump sum pay out from a critical illness policy would be yours to keep, regardless of whether you recover from the condition. This money could even allow for some changes to your work life moving forward.

With your life insurance, cost, the approach of the underwriter and the financial strength of the company are all issues to consider. However when advising on critical illness cover Freelancer Financials ensure that illustrations are not only competitive, but that the cover is of a sufficient quality.

critical illness insurance

Important considerations when looking at critical illness cover

There are a number of things to consider when choosing the right critical illness insurance policy for you, including the following:

  • Medical definitions of what is covered are very important - these must be comprehensive enough to be of practical use to you in the event of a claim. No-one wants to be told that they aren’t sick enough to make a claim.
  • Check how much cover you need, how many conditions are covered in your policy and how long the term of policy will last.
  • The provider must have a good track record of paying claims and of the claims that aren’t paid, justifiable reasons need to be given.
  • Premiums must also remain affordable throughout so that protection can be maintained as you get older.

You can cover yourself for a fixed level amount over a set term (i.e. until retirement/your children grow up/a debt is repaid etc. or you have the option of a reducing amount of cover that will reduce in line with a reduced liability - i.e. a repayment mortgage.

Fill in the form below to speak to Freelancer Financials about your critical illness cover  

ContractorUK are not authorised to offer regulated insurance advice. ContractorUK are introducers to Freelancer Financials.


Financial advice is given by Freelancer Financials, which is a trading name of Mortgage Quest Ltd and is regulated and authorised by the Financial Conduct Authority (FCA).  FCA registration number 312484.

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