Trustpilot
Show More

Ask an Expert

What’s the difference between critical illness cover and life insurance?

Many people choose to leave something for loved ones should something happen to them. However, there are many ways to do this, with different products offering protection in different circumstances.

Two of the more popular ones are life insurance and critical illness cover. While they are in some ways similar, there are key differences you need to understand if you’re considering either. So, what are the differences exactly?

Life insurance

A life insurance policy pays cash to a beneficiary should you die while you are under contract. This money can then be used for almost anything.

Generally, it is either used to ensure that financial obligations like mortgages can be paid or to provide financial assistance due to a loss of income. However, the downside to life insurance is that it only pays out if you die, without any provision for loss of income while you are alive.

Critical illness cover

Critical illness cover, on the other hand, will pay a cash lump sum if you fall foul of any of the illnesses included on your policy. Much like life insurance, the cash can be used for anything and is often used to replace lost earnings as a result of being unable to work.

Some policies can include clauses that cover terminal illness diagnoses, such as if you are given a set amount of time to live. However, they will not pay out anymore when you die.

Could I get both?

There is nothing stopping you from having both critical illness cover and life insurance. Some insurers may offer the different types of the cover into one integrated package, which may allow you to get a better rate than having them separately. However, this isn’t a given, so it’s always worth checking what’s on the market first.

Related guides

What is the Sandwich Generation?

The term “sandwich generation” is in reference to people within a particular age group (predominantly adults in their 40s-50s) who are sandwiched between two obligations of care. These people may be pressured into having to support their growing children and their own ageing parents at the same time. This support can be anything from financial, emotional, or even the physical support needed by elderly people with shopping or other daily tasks. The sandwich generation will most likely spend their time either looking after their children or tending to the needs of their parents, all while working full-time jobs. The fact that people are living longer and having children later in life has increased the number of individuals now living out the sandwich generation experience.

What Does a Life Insurance Medical Exam Involve?

Some life insurance companies may require you to undergo a medical examination before providing you with cover. While these may seem intrusive to some people and make them feel uncomfortable, they typically consist of very basic health checks, and unless you're extremely unhealthy, they can help you to get cheaper cover. 

Life Insurance and Coronavirus: Am I Covered?

As more is known about the novel coronavirus and how it impacts our health, more is known about how life insurance policies are impacted by the virus. Luckily, insurance companies treat a COVID infection like any other medical condition, and will pay out accordingly.