When taking out protection for your family, you may wonder should I get critical illness cover when getting life insurance? While life insurance is essential for providing financial support to your loved ones if you die, critical illness cover goes a step further.
It protects you and your family if you are diagnosed with a serious illness and are unable to work. For many people, combining both policies is one of the best ways to protect their household’s financial future.
What is critical illness cover?
Critical illness cover is a policy that pays out a tax-free lump sum if you are diagnosed with a specified serious condition during the term of your policy. Common conditions include:
- Cancer
- Heart attack
- Stroke
- Multiple sclerosis
The payout can be used however you need, whether that is paying your mortgage, covering household bills, funding private medical treatment, or even adapting your home.
How life insurance and critical illness cover differ?
- Life insurance: Pays a lump sum to your beneficiaries if you die during the policy term.
- Critical illness cover: Pays a lump sum to you if you survive but are diagnosed with a covered illness.
While life insurance protects your family if you pass away, critical illness cover protects your income and lifestyle while you are still living.
Why add critical illness cover to life insurance?
Stronger financial safety net
If you only have life insurance, your family could still face financial struggles if you are alive but unable to work due to illness. Critical illness cover fills that gap, ensuring your household has money coming in when you need it most.
Protection during working years
For many people, their 30s, 40s and 50s are the years when financial commitments are highest. Mortgages, childcare costs, and family expenses can quickly add up. A serious illness during this time could put enormous strain on your finances without extra protection.
Peace of mind for you and your family
Knowing you are protected not only in the event of death, but also if you become critically ill, brings greater reassurance to both you and your loved ones.
Pros of combining life insurance with critical illness cover
- Provides financial support whether you die or become seriously ill
- Helps with mortgage repayments, bills, and living expenses
- Can be taken as a combined policy, simplifying your protection
- Offers peace of mind that your family is protected in more than one scenario
Cons to consider
- Adding critical illness cover will increase your monthly premium
- Policies only pay out for illnesses listed in the terms, so not every condition is covered
- A single combined policy usually only pays out once, so separate policies may offer more flexibility
Final thoughts
So, should you get critical illness cover when getting life insurance? For most people, the answer is yes. Life insurance is essential, but critical illness cover makes your protection more complete by supporting you during your lifetime if illness strikes.
The earlier you take out this type of protection, the more affordable it will be, especially while you are young and healthy. As a life insurance broker, IGotCover can help you find the right mix of life insurance and critical illness cover from trusted UK providers, tailored to your needs. Speak to us today and take a step towards protecting both your family and yourself.
