Critical Illness Cover Calculator (UK)
Calculate a baseline figure for UK critical illness cover based on mortgage, dependants, income replacement, and emergency reserve needs. For information only.
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Critical Illness Cover Guide (UK)
What Critical Illness Cover Pays For?
Critical illness cover (CIC) pays a tax-free lump sum if you are diagnosed with a specified serious illness during the policy term. Different to life insurance (pays on death) and income protection (pays a monthly income while you cannot work). Typical conditions covered: cancer of specified severity, heart attack of specified severity, stroke, multiple sclerosis, Parkinson's disease, dementia, major organ transplant, kidney failure, paralysis. Important: the policy wording defines exactly which conditions and severities are covered — always read the definitions carefully, since coverage can vary significantly between insurers even for the same named condition.
How Much Cover Is Right?
Common starting points for estimating cover need: clear the mortgage so the home is secure. Income replacement: 2-5 years' net income to cover recovery, treatment, adapted living. Dependant reserve: £30,000-£100,000 per child for ongoing costs through recovery period. Lifestyle adjustment: home modifications, equipment, transport — typically £10,000-£50,000. The total can easily reach £300,000-£500,000 for a typical family with mortgage. Higher for those with younger children or larger mortgages, since both replacement income and outstanding debt need covering for longer.
What's the key thing to understand about Working with Workplace Cover?
Many UK employers offer 'Group Income Protection' and sometimes 'Group Critical Illness Cover' as a benefit. Worth checking: cover amount (often 1-3× salary). Conditions list (some group policies are narrower than personal policies). Waiting period before payments start (income protection). What happens if you leave the employer (usually cover ends). Calculation approach: work out total need first, then subtract employer cover to find the gap to fill with personal cover. Personal cover continues regardless of your employment status, which workplace cover typically doesn't.
What do I need to know about Things That Affect Premium?
Major factors in CIC premium pricing: age (premiums roughly double every 10 years older). Smoker status (smokers pay 50-100% more). Health declarations (high blood pressure, BMI over 32, family history of cancer/heart disease all add to premium). Occupation (some occupations including offshore, military, certain trades have loaded premiums or exclusions). Hobbies (climbing, motorsports, scuba diving can add loadings). Sum assured (cover amount). Term length. Type of policy: level term (same payout throughout the term) is generally cheaper than decreasing or increasing cover, but decreasing cover can suit someone specifically covering a repayment mortgage that reduces over time.