Critical Illness Cover Calculator

Critical illness insurance pays a tax-free lump sum if you are diagnosed with a specified serious illness such as cancer, heart attack, stroke or multiple sclerosis. Most policies cover 40-60 named conditions plus additional partial-payment conditions. The payout is typically used to clear a mortgage, fund treatment or provide a financial buffer during recovery.

The amount of cover needed depends on your circumstances. Common approaches include: mortgage balance only (to clear the biggest debt), mortgage plus 2-3 years' income (to cover recovery time), or a comprehensive amount covering all major financial commitments. Average UK claims are around £60,000-£80,000.

Premiums are based on age, health, family medical history, smoker status and the level of cover. Critical illness cover is significantly more expensive than life insurance because the probability of claiming is higher. Combining CI with life insurance (a life-or-earlier-CI policy) can reduce costs.

What is critical illness cover? Lump-sum tax-free payout on diagnosis of specified serious illness. UK 2026 typical cover: 30-50+ conditions including cancer (all but lowest grades), heart attack, stroke, multiple sclerosis, kidney failure, major organ transplant. Pays once on first diagnosis — policy then ends. Different from: life insurance (pays on death); income protection (pays monthly if can't work due to ANY illness). Combine: 'Life with Critical Illness' policies common — pays out on whichever happens first.

Critical illness statistics — UK 2026. Cancer: 1 in 2 lifetime risk (UK). Heart attack: 1 in 8 men, 1 in 14 women lifetime. Stroke: 1 in 6 lifetime (rising significantly post-50). Other major: dementia 1 in 5; diabetes 1 in 15; chronic kidney disease 1 in 10. By age 65: 30-40% of UK adults have experienced major illness event. Critical illness probability MUCH higher than death in working years — argument for CIC alongside life cover.

Cost of critical illness cover. 35-year-old non-smoker, £100,000 cover, 25 years: £15-£30/month. £200,000 cover: £25-£50/month. Add to life insurance: £15-£35/month combined typical. Higher costs: smokers (+50-150%); BMI 30+ (+25-100%); pre-existing conditions (exclusions or premium loading); age over 45 (premiums rise rapidly with age — 4-7%/year). Compare brokers: LifeSearch, Cavendish Online, Drewberry. Buy young + healthy for lowest lifetime cost.

What conditions ARE and AREN'T covered. Always covered (ABI Standard): heart attack, stroke, cancer of specified severity, multiple sclerosis, kidney failure, major organ transplant. Often covered: Parkinson's, motor neurone disease, Alzheimer's, deafness, blindness, paralysis. May vary: less aggressive cancers (DCIS), TIA (mini-stroke), partial paralysis. Insurer differences: Aviva, Legal & General, Vitality all use slightly different definitions. Read 'Conditions Booklet' carefully — small print matters when claiming.

When critical illness cover makes most sense. Dependents who'd suffer if you couldn't work for 12+ months. Limited savings (3+ months expenses). Mortgage to pay off if disabled. Self-employed without sick pay. Higher-than-average illness risk (smoking, BMI, family history). Combine with: life insurance for double-trigger payout. Don't bother if: substantial savings (12+ months expenses); fully insured income protection covering everything CIC covers; no dependents; can self-fund treatment and adaptations.