The first insurance cover aimed solely at helping cancer patients cope with the consequences of the disease is launched today.

Virgin Money said the package could pay for a lump sum benefit of up to £500,000 and be used for anything from trip of a lifetime holidays to meeting extra medical costs.

The company says the targeted cover would be cheaper than existing critical illness quotes and would feature staged payments based on the severity of the disease. Early-stage cancer patients would receive 10% of the sum assured while those at an intermediate stage would get 25%.