What is the average cost of critical illness cover?

The average cost of life insurance with critical illness cover is £34.52.

This is based on our internal data here at Reassured - the UK’s largest life insurance broker * . We calculated this from 551 life insurance with critical illness cover policies sold between 01/01/23 - 31/12/23.

While this is our average cost, the actual price you pay could be much less. In fact, life insurance with critical illness cover starts from just £10 a month º through Reassured.

Falling critically ill or passing away isn’t something anyone wants to consider, but it’s important to plan for the future in case the unexpected happens.

Why not take the first steps to protecting your family and compare fee-free quotes through Reassured?

We can present you with our best life insurance with critical illness cover deals from our panel of leading UK insurers.

Critical illness cover key points

  • Critical illness cover could pay out a lump sum if you’re diagnosed with a serious illness
  • It’s typically added to a life insurance policy for an additional cost to provide an additional level of cover
  • However, standalone critical illness cover policies are available through some insurers (not available through Reassured)
  • Insurers will include a list of the conditions that you’ll be covered for within your policy terms and conditions
  • This is often around 30 conditions but could be more (or less) depending on the insurer
  • When added to a life insurance policy, if a critical illness claim is made, your policy (including life insurance) will expire
  • As with life insurance, the price you pay for critical illness cover will depend on your personal circumstances

What is the average cost of critical illness cover based on?

The price of critical illness cover is calculated using the same key details as life insurance. These details include information about yourself and your chosen policy.

Personal factors required include:

  • Age - Typically, the younger you are when you take out cover, the cheaper your premiums will be
  • Health - You’ll need to provide details about your current health and wellbeing as well as your medical history (including family medical history)
  • Smoking status - You’ll need to declare your smoking status, this includes the use of vapes and e-cigarettes
  • Lifestyle - Lifestyle choices such as hobbies, alcohol consumption and drug usage can affect your application
  • Occupation - If your occupation includes risk factors, such as working at heights, you could pay more for cover

Policy factors required include:

  • Sum assured - The cover amount you’d like to be paid out to your loved ones
  • Policy term - How long you’d like your policy to last
  • Type of cover - Whether your life insurance policy is level or decreasing

These factors allow insurers to assess the level of risk you pose and your premium will be calculated accordingly.

Each insurer has a different underwriting process, therefore it’s essential to compare quotes to ensure you’re getting an affordable policy for your personal circumstances.

Save time and money by comparing multiple quotes through our award-winning broker service.

What is the average life insurance cost in the UK? Find out in this comprehensive 2024 guide »

How much is critical illness cover?

Life insurance with critical illness cover can be secured from as little as £10 a month through Reassured.

However, the exact price you pay will vary depending on your personal circumstances, such as your medical history, smoking status and other lifestyle factors (listed above).

The table below shows example prices for a life insurance with critical illness policy.

Quotes are based on non-smoker, in good health, for a level term policy with a term length of 20 years and a sum assured of £50,000:

Age Legal & General AIG logo LV= Aviva
20£8.05£8.75£8.93£9.16
25£11.07£11.56£11.57£11.35
30£14.71£14.90£16.93£14.66
35£20.60£19.87£20.11£19.46
40£28.48£27.92£27.09£27.87
45£40.04£40.51£41.68£39.52
50£61.21£56.07£61.32£57.63


As you can see from the table above, the price that you pay can vary significantly due to your age and which provider you choose.

Comparing quotes is the best way to find a great deal on a policy which meets all of your needs.

Reassured can help you compare fee-free quotes for life insurance with critical illness cover from major UK insurers, simply get in touch today.

What does critical illness cover?

Critical illness covers a range of conditions for a set period of time. If you’re diagnosed with a serious illness (that’s listed within your policy) during this time, a pay out will be made.

The exact list of conditions that are covered will be specified within your policy terms and conditions.

Typically, up to 30 conditions are covered but this can be more or less depending on the insurer.

Common conditions covered include:

  • Cancer
  • Heart attack
  • Stroke

With life insurance with critical illness cover, after making a critical illness claim, your policy will expire and your loved ones won’t be able to claim on your policy after your passing.

However, if you don’t make a critical illness cover claim and you pass away during the policy term, your loved ones can make a claim on your policy.

Comparing multiple quotes through Reassured can allow you to find the most comprehensive critical illness cover from our panel of insurers, at an affordable price.

Why not read this in-depth guide to find out what illnesses are covered by critical illness cover? »

How much critical illness cover do I need?

How much life insurance with critical illness cover you need will depend on your personal circumstances and what you’d like to cover.

Life insurance with critical illness cover can be used to help cover a range of financial commitments and other key costs, such as:

Mortgage

Mortgage/rent payments

Bills And Utilities Pos Pink

Household bills & utilities

Debts

Loan & debt payments

Family Living Pos Pink

Family living costs

Income Protection

Lost income

Health

Private medical treatment

Why not use our handy calculator below to work out how much life insurance with critical illness cover you might require:

Critical illness cover calculator

Calculate how much life insurance with critical illness cover you might need by filling in the fields which apply to you.

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£129,130 is the average mortgage debt in the UK.

Life insurance with critical illness cover could help to keep your loved ones in the family home should you fall ill or pass away before paying off the mortgage.

Source: Finder.com

£
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£2,700 per month is the average UK household budget, life insurance with critical illness cover could help to replace your income and cover necessities such as bills and living expenses if you fell critically ill or passed away.

Source: Nimblefins.co.uk

£
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£2,277 is the average credit card debt per household in the UK.

Factoring in any debts into your sum assured could provide you with peace of mind that you could continue with payments if you were to fall ill, or that the debts could be settled after your passing.

Source: Themoneycharity.org.uk

£
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Should anything happen, you’ll want to ensure that necessary costs are protected for your children.

This could include childcare (on average £7,729 per year) or school associated costs (up to £1,756 per school year).

Sources: Daynurseries.co.uk & Theguardian.com

£
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If you were to fall critically ill, it’s likely you’d need to take a significant time off work in order to recover.

While you’d be entitled to sick pay and/or government support, this may not be sufficient to cover all your key costs.

£
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The price of private medical treatment can vary depending on the severity of the condition and the type of treatment required. It could be wise to add an additional sum to cover these costs.

£
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If you don’t claim on your policy for a critical illness and you pass away within the policy term, your loved ones could use the pay out to help cover the cost of your funeral.

The current average cost of a funeral in the UK is £4,141, with the overall cost of dying up to £9,658.

Source: SunLife.co.uk

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You could factor in an amount to leave to your loved ones to spend as they wish after your passing. Alternatively, you could make a cash gift to a charity of your choice.

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Your total cover estimate

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Let us find our best quotes.

Is it worth adding critical illness cover to life insurance?

It’s predicted that 9.1 million people will be living with a major illness by 2040[1].

Therefore, it could be beneficial to financially plan for the future by taking out critical illness cover with your life insurance.

Being diagnosed with a critical illness could result in a loss of income if you’re unable to work and/or expensive medical bills if you need private treatment.

Adding critical illness cover to your life insurance policy could provide you with extra peace of mind that you and your loved ones can maintain your current standard of living should anything happen.

Although, it’s important to be aware that, if you make a critical illness claim your policy will expire and your loved ones won’t be able to claim upon your passing.

Critical illness cover can be added term life insurance for an additional cost through Reassured. Quotes start from 33p-a-day so why not get in touch?

Compare the average cost of critical illness cover

Is the average cost of life insurance with critical illness cover what you thought it would be?

It’s important to remember that our average cost is based on a small sample of our customers, who are from all walks of life and with differing circumstances.

Monthly premiums are calculated based on your personal circumstances and the details of your policy, so the price you pay will be personalised to you.

Life insurance with critical illness cover starts from just £10 a month through Reassured so your quotes could be significantly cheaper than the average.

By using our award-winning broker service you’ll be able to compare multiple quotes, allowing you to secure the most affordable deal from our panel of insurers.

All quotes are personalised, fee-free and without obligation. Start your journey today by getting in touch.

Sources:

[1] https://www.health.org.uk/news-and-comment/news/25-million-more-people-in-england-projected-to-be-living-with-major-illness-by-2040

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