Virgin Money is launching a cancer-only protection product, to be administered by Scottish Widows.
Money Marketing reported the planned launch last February, which was denied by Virgin Money.
The new product, to be called The Big V, is not a critical illness policy, and will run a severity-based approach to cover.
Virgin says it will be as cheap as 5 a month and will be sold directly over the phone and internet.
Staged payouts will be offered, based on severity of cancer. Early cancer will pay out 10 per cent of the sum assured, intermediate will pay out 25 per cent and advanced 100 per cent or any remaining balance.
Virgin Money chairman Sir Richard Branson says: “We are hammering down the cost of cancer protection and offering the most comprehensive cancer cover available in the UK. Our severity-based approach links the benefits to the impact of the condition which allows such keen pricing. The staged lump sum payouts mean quicker payout of cash which will help our customers to focus on recovery and not worrying about their finances.”