Critical illness cover

The cost of critical illness insurance varies, depending on factors such as your health and lifestyle and the level of cover you require.

On average, MoneySuperMarket customers pay £32^{^} for life insurance with critical illness cover, but this varies across different policies. For example, level-term insurance policies tend to be more expensive, whilst decreasing-term is usually cheaper.

Yes, you and your partner can take out a joint critical illness cover policy.

With most joint policies you will only be allowed a single claim. So, for example, if you were to be diagnosed with a critical illness and then claimed on the plan the policy would end and your partner would no longer have the cover. In some cases, however, you can buy joint policies that continue to cover the second person – even after a partner has claimed.

Some insurers offer automatic cover for your children under their critical illness policy, while others may add family cover at a lower cost – either way, you should check beforehand if you think children’s critical illness cover is something you might need.

What you should keep an eye out for is the amount of cover your child will get – it could be a range, a set amount or even a specific percentage of the amount of cover you have for yourself.

Some providers may offer standalone critical illness life cover. However, most people take it out alongside life insurance because it’s generally cheaper to buy the two types of cover together.

It depends on how your policy is set up, so read your own documents carefully.

If your critical illness cover and life insurance are a combined policy, you’ll usually only get one payout. If you claim for a critical illness your life insurance policy will end, and you won't get a second payout if you die within the term.

However, if you critical illness cover is an add-on to your life insurance policy, then you are essentially holding two distinct protection policies. That means it could pay out twice - once when you’re diagnosed with a critical illness and another if you pass away within the policy term.

No. Once you have claimed and a lump sum is paid out your cover under the policy automatically ends.

Terminal illness cover is different to critical illness cover and is usually included as a standard in life insurance policies. It means your insurer pays out if your doctor has confirmed you have a terminal condition and you’re likely to pass away within 12 months.

No. While both critical illness insurance and income protection insurance support you financially if you are unable to work, they do so in different ways.

Critical illness cover will typically provide you with a one-off lump sum payment if you are unable to work because of a health condition. Income protection insurance works differently by covering your loss of earnings for a fixed period or until you can return to work.

Different types of income protection insurance are available that can either cover a set portion of your salary, or your mortgage or loan repayments, for example.

The main difference between critical illness cover and terminal illness cover is that critical illness cover is what they will pay out for.

• Critical illness cover pays out for serious conditions that don't necessarily lead to death but can impact your way of life, such as strokes or heart attacks

• Terminal illness cover pays out for conditions that are more likely to be fatal within a year and can't be treated, such as certain stage cancers and tumours

The main difference between the critical illness cover and life insurance is how you receive your lump sum payment if you make a claim.

• Critical illness pays out to the policyholder directly if they have a medical emergency that affects their lifestyle, such as a heart attack or a stroke.

• Life insurance pays out the amount to loved ones after the policyholder dies.

Both can be purchased individually, or you can add critical illness onto your life insurance policy.

No, critical illness insurance policies typically do not pay out on death. The insurance company will generally pay a lump sum to the policyholder if they are diagnosed with an accepted serious illness while they are still alive.

Once this payment has been made, the policy usually ends. No further payments will be made, even if the policyholder later passes away. If you specifically want insurance that will pay out in the event of death, you should seek alternative forms of life insurance.

If you can prove you have been diagnosed with an illness covered by your policy, your insurance company should pay out, as promised. However, if an insurer finds that you have been dishonest — for example, if you’re a smoker but failed to inform your insurer of this — then they may refuse to pay.