Updated: July 19, 2019

Critical Illness Cover: How Much Do You Need?

How much critical illness cover do you need? We'll explore typical policy costs, factors that affect them, and how to secure cost-effective extensive cover

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Richard Angliss

Author: Richard Angliss - Finance Expert

Updated: July 19, 2019

If you’re considering taking out cover to protect your loved ones in the event of you falling ill and being unable to work, it’s not a decision to make lightly.

With such a vast range of providers popping up on the market, it can be difficult to know what critical illness insurer to choose, how much insurance to get, and which plan is most suitable for your situation.

If you’re wondering how much your critical illness insurance should cover, and what you could expect to pay per month, then look no further.

How much is critical illness insurance in the UK?

The cost of critical illness cover depends on many variables, including how comprehensive the policy is (particularly how many conditions it covers), the sum assured, policy type, the term length, and a number of personal factors such as age, medical history and lifestyle.

Critical illness cover tends to be an add-on to life insurance in a policy that provides both types of cover, so prepare to factor in this cost. Critical illness cover can be a standalone product, but most experts will tell you that combining it with life is usually cost-effective.

If you receive a critical illness diagnosis that is covered by your plan, then the scheme will pay you a lump sum.

If you’re diagnosed with a critical illness, the life insurance element of a combined policy will cease after a payout has been made.

However, some plans may allow life insurance cover to continue after diagnosis of a critical illness, so if this is of interest, speak to an advisor.

How much should I pay for critical illness insurance per month?

As mentioned, there is no “average” cost of how much you should expect to pay for critical illness cover each month because there are a number of factors which can impact your quote.

As an example, a £100,000 life and critical illness cover for a healthy, 30-year-old, non-smoker over a 20 year period may cost £25 per month (although this will vary by insurer and other individual circumstances).

In this example, the sum will then increase to approximately £45 a month at the age of 40, rising to £100 per month by age 50. This illustrates how much of an impact age has on the price of this type of policy.

While it may seem like a no-brainer to take out a policy when you’re young to reduce the cost of your premiums, it’s important to consider when you’re most likely to rely on the cover.

If you’re not sure whether it’s the right time to take out critical illness insurance, or you want to how much you should buy, get in touch and we’ll refer you to a specialist who will provide you with advice tailored to your needs.

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How much critical illness insurance should I take out?

The amount of critical illness cover you need to take out should be calculated in line with the number of dependents you have, your income, your current debts and any other outgoings. Also, you may want critical illness cover because you’d like the option of having private medical treatment if ever you were diagnosed with a critical illness, rather than having to rely on the NHS.

Bear in mind that each insurer will cover different conditions, and the more conditions covered, the higher your payments are likely to be.

If you’re unsure about how much critical illness insurance you do need to take out, make an enquiry. The experts we work can talk you through your options.

What factors impact how much cover I need for critical illness?

Some of the questions you need to ask yourself when you decide how much critical illness cover you will require include:

  • How many young children or other dependents do you have?
  • Do you have a partner that relies on your income to live?
  • Do you have a mortgage? If so, how much is outstanding?
  • Do you have any other debts? How much is owed?
  • How much does your family need to pay the bills and live off?
  • Do you have any savings or other assets?
  • What state benefits do you currently receive, or what are you likely to get in the future?
  • Whether you want funds for private medical treatment

Once you have worked out the above, you should have a rough idea as to what sort of lump sum will be needed for you and/or your dependents to continue the same quality of life in the event of you receiving a critical illness diagnosis.

If you’re struggling to tot up your debts or unsure as to how to make accurate estimations, you can get in touch and one of the specialists we work with will be in touch to assist you in the process.

Speak to an expert to find out how much critical illness cover is recommended for you

When you take out a critical illness policy, it’s incredibly important that you select a provider and a plan that is tailored to your specific circumstances.

The specialists we work with have whole-of-market access and are on hand to offer advice tailored to you. You can work together to calculate what amount of critical illness cover is needed and how much you should pay for your insurance policy.

Call us today on 0808 189 0463 or submit an enquiry.

We only work with accredited advisors, we don’t charge a fee, and there is absolutely no obligation on your part.

Ask a quick question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in critical illness cover. Ask us a question and we'll get the best expert to help.

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Richard Angliss

Richard Angliss

Finance Expert

About the author

Richard Angliss has made a career in financial services which stretches over 40 years.

His early career was spent learning about the various financial products and applying them to prudent advice, working for one of the largest life assurance and investment firms. After that he joined the financial services arm of a very well-known firm providing independent advice to their 8 million customers.

For the last 20 years he has been involved in building software solutions that help Advisers and clients work together to achieve good financial outcomes and helping to set up three independent advisory firms. He also has written many articles for financial services publications and provided commentary for newspaper journalists.

At an early stage in his career he realised the great satisfaction that comes with being able to help people achieve their goals and protect their families. “Regulation of financial services has hugely impacted on ensuring people get appropriate advice. The issue these days is access to that advice and just as importantly regular reviews to make sure that everything stays on track”.

With the growing development of online resources such as Online Money Advisor he sees a great future for people to access advice to make their pension and investment work harder for them.  Plus, of course, to ensure they have insurance products in place that will be required when unforeseen events happen.

He knows getting that balance right is crucial to prudent financial planning and the wellbeing of individuals and their families.

FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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