Critical Illness vs Life Insurance Calculator

Life insurance pays out on death. Critical illness cover pays a lump sum if you are diagnosed with a specified serious illness (cancer, heart attack, stroke). You must survive the specified conditions to claim critical illness.

Life insurance is essential if you have dependants or a mortgage. Critical illness is valuable if you are the main earner and would struggle financially if unable to work due to serious illness. Many advisers recommend both.

A non-smoking 35-year-old might pay £30-£60/month for £150,000 critical illness cover over 25 years. Costs rise significantly with age, smoking status, and pre-existing conditions.

Standard critical illness policies cover cancer, heart attack, stroke, multiple sclerosis, major organ failure, and coronary artery by-pass. Advanced policies cover 80+ conditions including earlier-stage cancers.

Yes. Combined life and critical illness policies pay out on either death or critical illness diagnosis — whichever occurs first. This is often more cost-effective than two separate policies.

Statistics show 1 in 2 people will get cancer, and serious illness affects working-age adults significantly. If your employer has only statutory sick pay (£118/week) and you have financial commitments, critical illness cover is strongly recommended.

Mortgage protection life insurance protects against death. Mortgage critical illness cover protects against being unable to work due to serious illness. Ideally you need both.

Income protection pays a monthly income if you cannot work (any illness/injury). Critical illness pays a one-off lump sum on specific diagnosed conditions. They are complementary not competing products.

Yes, cancer is the most common critical illness claim. However, many policies exclude certain early-stage skin cancers and some pre-cancerous conditions. Check the definitions carefully.

Pre-existing conditions may be excluded from cover, loaded (higher premium), or declined depending on severity. Specialist insurers and high-risk cover providers exist for people with medical history.

Typically until your mortgage is paid off, children are financially independent, or retirement. 25-year level term is common for mortgage protection alongside a repayment mortgage.

Yes. Critical illness pays a single tax-free lump sum on diagnosis of a covered condition. You can use it for mortgage repayment, medical costs, income replacement, or any purpose.