It’s a fair question: do you need both critical illness cover and life insurance, or is one enough? If you’re sorting out your financial protection and trying to decide what’s worth your money, understanding the difference between the two is the first step. Let’s break it down and see when it might make sense to have both.
What is life insurance?
Life insurance pays out a lump sum to your loved ones if you die during the term of the policy. It is designed to help your loved ones manage financially in the event of your absence. They could use the money to pay the mortgage, cover everyday living expenses, or maintain their standard of living.
There are two main types:
- Term life insurance: lasts for a set number of years
- Whole of life insurance: lasts until you die, whenever that may be
What is critical illness cover?
Critical illness cover pays out if you’re diagnosed with a serious medical condition listed in your policy. This could include illnesses like:
- Cancer
- Heart attack
- Stroke
- Multiple sclerosis
- Major organ transplant
The idea is to provide financial assistance during recovery or treatment, especially if you’re unable to work for an extended period.
What are the key differences?
| Feature | Life insurance | Critical illness coverage |
| Pays out when | You die | You survive a serious illness |
| Purpose | Supports your loved ones | Supports you financially while you’re alive |
| Use of payout | Mortgage, debts, funeral, family living costs | Treatment, time off work, adaptations to home |
Can you get them together?
Yes. Many insurers offer combined policies or add-ons where you can include both types of protection. This means you might get a single payout if you claim for a critical illness, or your family will receive a payout if you die.
When might you need both?
Here are three scenarios where having both makes sense:
- You have dependents: Life insurance can help them manage financially if you’re no longer around.
- You rely on your income: If getting seriously ill would affect your ability to work, critical illness coverage can bridge that gap.
- You have financial responsibilities: Mortgages, childcare, or bills don’t stop if you fall ill.
If both death and serious illness would create financial strain, it may be wise to have both types of protection.
FAQs
Can I buy critical illness cover without life insurance?
Yes, some insurers offer standalone critical illness policies, though it’s often sold as an add-on to life insurance.
Is critical illness cover more expensive?
It can be, because it’s more likely to be claimed on. But the value it provides during recovery can be significant.
What if I already have income protection?
Income protection pays out a regular monthly benefit, while critical illness gives a lump sum. They can work together, but you might choose one over the other depending on your needs.
What illnesses are covered?
Policies usually cover a specific list of conditions. Always check what’s included and what definitions the insurer uses.
What if I survive the illness?
That’s exactly what critical illness cover is for. The payout helps you adjust and recover without added financial stress.
Final thoughts
Choosing between life insurance and critical illness cover should come down to your personal situation. Many people benefit from having both, especially if they have financial dependents and would struggle if illness stopped them working. If you’re not sure what you need, by speaking to one of our team at IGotCover we can help you find a balanced policy that gives peace of mind and practical support.
