Feefo Platinum Trusted Service Award 2024
Free £100 Gift Card Offer
Our logo

PROTECTION PROMISE - 100% Conditions Covered

Our Insurance Partners

Sign up for our newsletter

Stay in the loop about all the latest news, exclusive offers, and fantastic discounts. We promise it's spam-free!

Compare average cost of critical illness cover UK 2023

Critical illness cover is the best and most affordable way to protect you and your loved family against financial difficulty from serious illness. Critical illness cover provides vital financial support if you become seriously ill and unable to work. It offers a lump sum of money to help cover essential expenses. The payment from your policy aims to help you long term or until you can return to work.

Based on our most recent research, the average cost of critical illness cover in the UK is £25.16 per month for level term cover (based on a pay out of £50,000). This won’t be the exact price that every person will pay though, as there are various standard factors that will affect the cost of critical illness cover.

The price of your policy depends on many factors and there are different options to fit different budgets. The main elements that insurers will focus on are your age and your health when you apply. Most of the time, your policy will cost much less the younger you are when you apply.

A picture of a stopwatch

60-Second Summary – Average cost of critical illness cover UK

Here we aim to answer all the commonly asked questions about critical illness cover and how much it usually costs. This is only a rough guide to help you and how much you will pay for your policy can vary.

  • The average cost of critical illness cover is based on your age, smoker status, the type and amount (£s) of cover and how long you want to be covered for (policy term).
  • If you’re sure not how much critical illness cover you need, there are a few things you should consider. Think about how you would support yourself financially if you became seriously ill and if you have enough savings to cover essential expenses e.g. mortgage or rent payments.
  • You can check prices online or do your own research to work out an idea of price. The easiest and fastest way to find the best price is to speak to a critical illness insurance expert for help and support.

Critical illness cover can be an extremely affordable policy, particularly for people with no medical conditions or other risk factors.

There are several tools available online (e.g. price comparison sites) that can help you get a rough estimate of how much you can expect to pay.

If you have medical conditions or a high-risk occupation, it may be harder to get an accurate idea of cost online. The best and easiest way to find out how much you are likely to pay is to consult an insurance specialist for expert advice. We have a simple guide dedicated to critical illness cover, how it works and how to find the best pricing.

A person lying in a hospital bed with the caption 'Average cost of critical illness insurance guide. Read our guide to the average cost of critical illness cover UK 2023'

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

Budget is often one of the main considerations when choosing a new insurance policy. No one wants to pay more than they need to and doing some research can be key to saving money.

The main factors insurers will base critical illness cover pricing on are:

1) Age

Policies tend to be cheaper the younger you are, so we always recommend putting cover in place sooner rather than later.

Prices will increase every time you have a birthday, as insurers view you as a higher risk of claiming the older you get.

2) How much cover you need (£s)

As you might expect, you will pay more per month if you need a higher level of cover.

Assess how much cover you realistically need before choosing your policy. You can ask a critical illness insurance expert for advice if you’re not sure what amount of cover is right for you.

3) Your health

Insurers will assess your medical history and base premiums on how likely they believe you are to claim due to ill health.

If you have a pre-existing medical condition, it may be worth talking to an expert for advice about which insurers will offer you the fairest price.

4) Smoker status

Most life insurance products will cost slightly more for people who smoke or vape due to the associated health risks.

There can still be some great insurance policies available for smokers. The key is to make sure you are speaking to the right insurers for you.

5) Policy term (years)

How long you want your cover to last for will also affect how much you pay.

Think carefully about your policy term, so you don’t get cover for longer than you really need it.

6) Occupation

High risk job roles (e.g. working at heights) can increase the chance of illness or injury, so insurers will often increase pricing a little because of this.

If you are struggling to find reasonable prices because of your job, it is worth talking to an expert for more advice.

7) Extra benefits

You may choose to add additional benefits like children’s cover to your policy which in most cases will cost slightly more.

Extra benefits can be useful and offer a higher level of cover, but think about what you can afford long term before you commit.

It can be confusing to compare critical illness cover policies as all insurers tend to offer something slightly different. As the conditions covered and illness definitions vary, it can be harder to work out which policy has the best value for money.

An insurance expert will be able to help you figure out how much you will pay, based on your personal circumstances and how much cover you need.

The insurer you choose will also affect your policy price, particularly if you have any pre existing medical conditions. Some insurers are simply better than others for people with health problems and will be able to offer more affordable pricing.

Age is usually the biggest factor that will impact the cost of your policy. Premiums for any life insurance product (such as critical illness cover) will increase every year as you get older.

This is because we are all at a higher risk of developing medical issues as we age. We would always recommend putting cover in place earlier in life if possible, to avoid higher costs.

Below we have examples of critical illness insurance monthly premiums based on age. These figures are to demonstrate just how much pricing can change over time.

Below we have examples of critical illness insurance premiums based on age, to demonstrate just how much pricing can change over time.

Critical illness insurance – £50,000 with policy term of 25 years (non-smoker)

AgeLevel term critical illness cover (family protection)Decreasing term critical illness cover (mortgage protection)
25£8.78£6.59
30£11.21£8.64
35£15.79£11.56
40£22.87£16.21
45£33.62£23.54
50£58.72£35.28

Critical illness insurance – £50,000 with policy term of 25 years (smoker)

AgeLevel term critical illness cover (family protection)Decreasing term critical illness cover (mortgage protection)
25£12.33£8.31
30£17.60£11.44
35£26.31£17.45
40£39.28£26.81
45£59.87£40.27
50£95.58£60.61

*these premiums are based on a person with no medical conditions and are accurate as of 11/07/2023. Other risk factors can affect pricing and so this is meant only as an indication.

SAVE up to *34% on your insurance when you compare quotes with iam|INSURED

Protect you and your family for less

We're rated 'EXCELLENT'

Five Stars

on

Feefo Logo

*Over 1,100 independent customer reviews

Most critical illness cover policies tend to be combined with life insurance – though it is possible to buy critical illness cover as a separate policy too.

These combined policies are some of the most comprehensive you can buy, providing an extra level of protection for you and your loved ones. If you have a family history of serious illnesses like cancer, these policies can be even more useful.

Serious illness could leave you out of work for months or even years at a time. The cash lump sum from a critical illness pay out would work to support you financially in this situation.

Here, we have examples of how much you could pay for combined life and critical illness insurance depending on your age.

Life and critical illness insurance – £200,000 over 25 years (non-smoker)

AgeLevel term life insurance and critical illness cover (family protection)Decreasing term life insurance and critical illness cover (mortgage protection)
25£31.92£21.96
30£43.91£29.67
35£61.55£41.16
40£89.67£59.57
45£135.71£89.92
50£233.46£141.24

Life and critical illness insurance – £200,000 over 25 years (smoker)

AgeLevel term life insurance and critical illness cover (family protection)Decreasing term life insurance and critical illness cover (mortgage protection)
25£43.85£27.60
30£65.99£40.62
35£101.14£63.92
40£156.04£102.84
45£244.54£158.93
50£387.70£246.23

How much critical illness cover do I need?

You need to consider your budget when selecting an insurance policy to ensure it remains affordable in the long run. Comparing prices across the market is key to finding the best cover at the lowest price.

However, it always better to pay slightly more if this means you have the right level of cover.

Before you apply for critical illness cover, you should consider:

  • Do you have any savings to support you if you become ill?
  • Do you have mortgage or rent to pay?
  • How much mortgage balance is outstanding?
  • Do you have other debts or financial commitments to pay each month?
  • Would my employer contribute if I need time off work? (long term absence)
  • Will my partner still be able to work?
  • Potential medical expenses e.g. private treatment or adaptions to your home
  • Other income you receive e.g. state benefits

Consider the potential financial impact of being unable to work for 6 months, 12 months or even years due to illness. Being diagnosed with a critical illness can have a huge impact on your everyday life.

Critical illness cover will pay out a cash lump sum to help you cope with the financial impact of your condition. The maximum amount of cover available will vary depending on the insurer you choose.

All insurance providers will have different critical illness definitions and will pay out for a different number of conditions. You may qualify for a pay out with one where you wouldn’t with another.

There are other types of cover available that can support you if you become seriously unwell. Another policy option people often choose is income protection insurance. This is similar to critical illness cover but pays out a monthly income rather than one lump sum.

More information – Critical illness cover vs income protection

Five Stars

Rated "Excellent" 5 out of 5

"This company went above & beyond to get me cover even though I have MS, I am very happy I managed to get cover, Amazing staff, Dean went above & beyond, I highly rate this company."

by Elizabeth Turner-Long - 9th August 2023

Critical illness cover is a useful policy that is designed to pay out a cash lump sum if you’re diagnosed with a serious illness or condition. Whether the cost is worth it is up to each person, but the financial support can make a huge difference at a difficult time.

Critical illness cover can give you some peace of mind that your important bills and expenses will be covered while you recover from or adapt to living with your new condition. Critical illness insurance payouts are most often used to cover costs like:

  • Mortgage or rent payments
  • Utility bills and general cost of living
  • Private medical consultations or second opinions
  • Adjustments to your home

Frequently asked questions about the average cost of critical illness cover

How much should I buy for critical illness insurance?

You should think about the financial impact of serious illness on your household and how long you would want a critical illness pay out to support you for (e.g. 12 months).

The simplest way to work out how much critical illness cover you need is to start by looking at how much you pay out each month in expenses such as mortgage/rent and utilities.

You should also consider other potential costs too, such as if you wanted private medical treatment or need to make adjustments to your home. The amount of cover you choose will be a very personal decision but thinking about all these factors can help give you a rough estimate of how much cover you might need.


Is critical illness insurance worth it UK?

Critical illness cover is an easy way to provide yourself and your family with extra financial security if you were diagnosed with a serious illness. This can be particularly useful if your condition means that you can’t work anymore or can’t work as much as you used to.

Many UK families find it to worthwhile to have critical illness insurance or an alternative like income protection insurance in place to support them in this situation.


What is a good critical illness amount of cover?

It’s important to think carefully about how much critical illness cover you want before you apply. It can be useful to consider how you and your household would cope financially if your health prevented you from working as normal.

Think about your average monthly outgoings and how much you personally contribute to this and then times this amount by how long you would like the pay out to support you for (e.g. 6 months, 12 months etc).


How much should I pay for critical illness cover?

It’s always best to buy an amount of critical illness cover that is affordable for you to pay for long term.

The average cost of critical illness cover is around £25.16 per month but the cost can vary significantly based on factors like your age and medical history. If you’re struggling to find a price that works with your budget, it can be helpful to talk to a critical illness insurance expert for advice and guidance.

Critical illness cover pays out a tax-free lump sum if diagnosed with a serious illness covered by your policy. There are a lot of options out there for this type of policy which means it’s not always easy to know which will work best for you.

The simplest (and fastest) way to work out which policy is best for you is to speak to an insurance expert.

Pricing can vary depending on the insurance company you choose, and a specialist advisor can easily sort through policies to find your best options.

More about critical illness cover

Below, we have even more guides to help you learn about critical illness cover and how it works.

Useful resources

Citizen’s Advice – Critical illness insurance

Office for National Statistics – UK health indicators: 2019 to 2020

Public Health England – Health profile for England 2021

Sign up for our newsletter

Stay in the loop about all the latest news, exclusive offers, and fantastic discounts. We promise it's spam-free!

Is it worth paying for life insurance?

Yes, if you’ve got children or financial dependents then you should have life insurance to protect them if you die. Martin Lewis and the Financial Conduct Authority recommend that you take out life insurance to protect your family and your home. Generally, life insurance premiums start from as little as £5 per month and will be cheaper for younger adults.

Common myths about life insurance:

  • Life insurance won’t pay out (pays out 98% of claims)
  • People with medical conditions can’t have life insurance
  • Life insurance is expensive
  • Savings can be just as effective as life insurance
iaminsured logo

iaminsured.co.uk

https://www.iaminsured.co.uk » guides

Is life insurance worth it? - iam|INSURED

What is the average cost of life insurance per month?

Based on recent research carried out, the average cost of life insurance is approximately £38 per month and the average level of cover is £152,000. Life insurance premiums also vary dramatically from one insurance provider to another and you can reduce your monthly premiums by shopping around.

Fundamentally, life insurance premiums vary depending on your age, health and the amount of cover that you need, starting from as little as £5 per month. You can also get life insurance to protect your family and your home against financial loss if you die.

iaminsured logo

iaminsured.co.uk

https://www.iaminsured.co.uk » guides

Average cost of life insurance - iam|INSURED

What does life insurance cover you for?

Life insurance is a monthly renewable ‘term insurance’ contract that pays out a cash lump sum or regular payments on death to your family or beneficiaries. Policies are most commonly used for family protection or mortgage protection for your loved ones if you die and your household income reduces, plus the additional issues of losing a parent or carer.

Traditional life insurance will not exclude any pre-existing medical conditions and will cover suicide after 12 or 24 months. You can also use life insurance for business protection purposes as well as tax-efficient business life insurance for directors or key people.

What are the disadvantages of life insurance?

The biggest and most common problem that consumers have with life insurance is the cost and the monthly premiums. This is the top reason for policy cancellations and why more people don’t take out life insurance to protect their family.

Another key disadvantage with life insurance is that it holds no investment value, nor can you cash it in. Life insurance works like any other traditional general insurance policy (e.g. car insurance, house insurance, pet insurance etc.), you pay a monthly premium and it will pay out in the event of a claim. Some people decide to use savings instead of taking out life insurance but you need to make sure that you have sufficient savings to cover the costs of death for your family.

Why do I need life insurance?

The fact is that nobody actually ‘needs’ life insurance, but it is strongly recommended that families and couples have cover to protect their loved ones in the event of death. Martin Lewis recommends life insurance and says “this is something that every parent, partner, or person with any other type of dependent needs to consider”.

Life insurance financially protects your loved ones if you die and pays out a cash lump sum to repay your mortgage, pay for school fees, replace lost income, and pay for regular outgoings. Mortgage life insurance is not linked to your mortgage debt so you can use it to pay off some or all of your mortgage.

Average Cost of Life Insurance

Average Cost of Life Insurance

The average cost of life insurance is based on your age and your health which are the two main elements to pricing for life...

Martin Lewis Life Insurance

Martin Lewis Life Insurance

Martin Lewis has been quite strong in his views around why some people should seriously consider life insurance and what...

Average Cost of Critical Illness Cover

Average Cost of Critical Illness Cover

Critical illness cover is a good and affordable way to provide extra financial protection for you and your loved ones. Critical illness cover can...

Martin Lewis Income Protection

Martin Lewis Income Protection

MoneySavingExpert.com launched in 2003 for just £100. The website has since become the biggest source of free financial guidance to millions...

View All ❯

Our Mission

At iaminsured.co.uk, we believe in much more than just insurance policies; we believe that everyone is unique and should be treated with the fairness that they deserve. We also believe in providing the very best financial protection, and giving you peace of mind to continue with your busy life without the stress or worry of what might happen.

We are dedicated to providing the best outcomes that we can and access to the best insurance solutions in the way that our customers want or need. We understand that everyone is totally unique in how they want things done and their own individual circumstances, which is where our totally unique approach to financial protection is driven from.

  • 100% online protection solutions
  • Top rated advice from the UK’s leading experts
  • Unique specialist protection services for all medical conditions, occupations and activities
  • Lowest prices and affordable cover options guaranteed
  • Dedicated to providing the best protection products for all your needs

With nearly three decades of expertise and established with a commitment to excellence in everything that we do. We have been a trusted partner for thousands of families, individuals and businesses, all with one common goal of looking for the best protection solutions.

Our Mission: To provide easy access to fair pricing, affordable protection and the very best financial security to families and individuals. We are dedicated to offering comprehensive insurance solutions that safeguard the well-being of our policyholders. Guided by integrity, transparency, and a commitment to excellence, we strive to empower consumers and families to face the future with confidence. Our mission is not just about policies; it's about protecting dreams, ensuring legacies, and being a trusted partner on life's journey.

Open chat
How can we help?
Scan the code
Welcome to iam|INSURED 👋

Please feel free to connect with us on WhatsApp so we can help you and answer your questions.

Click “Open Chat” to start.