Specified serious illness cover
A tax-free lump sum paid on diagnosis of a serious illness the policy covers, giving you money to focus on getting better rather than on the bills.
What it is
Specified serious illness cover, sometimes called critical illness cover, pays a lump sum if you are diagnosed with one of the conditions the policy covers, such as cancer, a heart attack or a stroke. Unlike life cover, it pays out while you are alive, and you can use the money however you need, to cover the mortgage, pay for treatment, adapt your home, take time off, or replace income you lose while you recover.
It can stand alone, or be added to a life cover policy. Added cover comes in two forms: accelerated, which pays out of the life sum and reduces it, or additional, which pays on top. We explain which arrangement suits you.
The wording matters more than the price
Insurers cover different numbers of conditions and define them differently, and they vary in whether they make partial payments for less severe conditions. The headline number of conditions matters less than the quality of the definitions, because that is what decides whether a claim actually pays. This is exactly where expert advice earns its keep.
Who it is for
- Anyone whose finances would suffer if they could not work for months
- Parents and mortgage holders
- Self-employed people with no sick pay to fall back on
- People with a family history of serious illness
How it works
You choose the sum, the term, and whether it stands alone or sits with your life cover. There is medical and lifestyle underwriting, and the premium reflects your age, health and the level of cover. If you are diagnosed with a covered condition that meets the policy definition, the tax-free lump sum is paid. Serious illness cover pays a one-off amount on specific diagnoses, whereas income protection pays a regular income for any illness or injury that stops you working, and many people benefit from having both.
Why talk to BDS
The value is in the policy wording, not just the premium. We compare definitions and covered conditions across insurers rather than only the price, and set the cover alongside your other protection so there are no gaps and no waste. Bryan, Barbara and David advise on the right level and structure.
Common questions
It varies by insurer. Cancer, heart attack and stroke are core, but the definitions and the number of extra conditions differ. We compare them for you.
No. Serious illness pays a single lump sum on a covered diagnosis. Income protection pays a regular income for any illness or injury that stops you working. They do different jobs.
It depends. Accelerated cover added to life cover is cheaper but reduces the life sum if it pays out. Standalone or additional cover keeps them separate. We advise which fits.
No. The lump sum is free of income tax.
Other kinds of cover
Important information
Tax reliefs, thresholds and rules referred to here are set by Revenue and apply to the 2026 tax year. They can change in future Budgets and Finance Acts, and the right cover depends on your own circumstances. The examples are illustrations, not quotes.
David Sheahan Insurance & Investments Ltd t/a BDS Financial is regulated by the Central Bank of Ireland. Reg. no. 115813. Offices in Limerick, Dublin and Galway.
This content is general information and is not financial advice.
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