Critical Illness Cover Calculator
How to Use This Calculator
This is typically the largest element — the ability to clear your mortgage is a key reason for CI cover.
Personal loans, car finance, credit cards — any debts you'd want cleared.
How much annual income would your household need to replace if you couldn't work?
Reduce the cover needed by your existing emergency fund.
Frequently Asked Questions
What is critical illness cover?
Critical illness cover pays a tax-free lump sum if you're diagnosed with a specified serious illness — typically cancer, heart attack, or stroke. The payout can clear your mortgage, replace income, or fund care and adaptation costs.
What conditions are typically covered?
Most policies cover: cancer, heart attack, stroke, multiple sclerosis, organ failure requiring transplant, total permanent disability, blindness, and deafness. More comprehensive policies cover 50-100+ conditions.
Is critical illness cover the same as income protection?
No — critical illness pays a single lump sum on diagnosis of a specified condition. Income protection pays a regular monthly income if you can't work due to any illness or injury. Many people have both.
Does the NHS cover my needs if I get seriously ill?
NHS treatment is free, but critical illness cover provides funds for: mortgage payments during recovery, home adaptations, private treatment, childcare, and other costs the NHS doesn't cover.
How is the premium calculated?
Premiums depend on: age, health history, smoker status, cover amount, policy term, and conditions covered. Typically increases significantly with age — buy earlier for lower premiums.
What's the difference between level and decreasing cover?
Level cover pays the same amount regardless of when you claim — suitable for interest-only mortgages or income replacement. Decreasing cover reduces over time — designed to track a repayment mortgage balance.
Can both partners be covered?
Yes — joint policies cover both partners for one premium (usually cheaper), but pay out only once on the first claim. Two single policies pay out twice, but cost more. For protection with a mortgage, joint may suffice.
Is the payout tax-free?
Yes — critical illness payouts are completely free of income tax and capital gains tax in the UK. There may be inheritance tax implications if the policy is written in trust incorrectly — writing in trust avoids this.