Do you need critical illness cover or income protection?

Deciding which type of life insurance policy is right for you is a big decision but with the help of Caspian, we can help you make the choice that’s right for you and your loved ones.

Consider whether you need critical illness cover or income protection, the pros and cons of each, and evaluate whether the potential financial risk justifies peace of mind for you and your family.

What’s the main difference between critical illness cover and income protection?

Both of these policies are a type of life insurance but apart from that, they don’t really have much else in common. The main difference between the two is the way they pay out. With a critical illness policy, if the time came to make a claim on your cover, it would pay out a one off, tax-free, lump sum payment.

Income protection is a whole different type of life insurance policy, so instead of a one off lump sum payment, this type of cover would pay-out monthly bursts of money to help keep you afloat. These monthly payments could make all the difference during a time where you weren’t able to work as normal, due to illness or injury.

Although these types of cover are very different, one thing they have in common is that both policies are designed to give peace of mind, provide financial security, and ensure you don’t struggle financially if you were to develop a critical illness or be unable to work due to accident or sickness.

How can critical illness cover help you?

Critical illness cover financially protects you if you were to be diagnosed with a listed critical illness. In the event of a valid claim, you’ll receive a lump sum payment from your cover which could help you in so many different ways. Here are just a few examples of how this cover could benefit you and your family:

  • Travel costs, if specialist hospitals are further away
  • Replacing lost income
  • Modifications to your home as a result of your diagnosis
  • Contribute towards costs for any extra care you may need
  • A nest egg to leave for your loved ones
  • Paying for medical bills, if you had to have any treatment that’s not covered by the NHS
  • Taking your loved ones on a dream getaway, helping to make those unforgettable memories as a family


Try our free critical illness calculator


How do you know which is the right choice for you?

Life insurance is never one size fits all and ultimately, the type of cover that is right for you depends on your individual circumstances.

When it comes to life insurance, from just a quick Google search, you will be inundated with different options. So when it comes to finding the right life insurance policy for you, asking for a bit of help can save you both time and money.

At Caspian, we will consider factors such as your age, occupation, health, and affordability. We always take the time to learn about you, so that we know which features are the most important to you. We search through the UK’s leading providers and compare them to find the right cover for your unique needs.

How much does critical illness cover or income protection cost?

There are so many different types of life insurance policies out there but regardless of what type of cover you’re looking at, there is no one set cost. To determine the cost of your cover there are so many different factors that will need to be assessed, such as:

  • The amount of cover you choose
  • Your age
  • The type of life insurance policy
  • Whether you smoke or not
  • Your job
  • What your hobbies are
  • Your provider

The above are just a few examples but there are so many factors that go into calculating the cost of your cover, it might seem overwhelming at first glance but that’s where we come in! We can look at your circumstances from a different perspective and give advice on what type of cover is best for you and your family, saving you both time and money in the process!

Calculate the cost of your income protection policy

What does income protection do to help you?

Think of this cover as a replacement income, if you weren’t able to work as normal, due to illness or injury.

Even though every policy is different and unique to its owner, income protection covers such a broad range of illnesses. Unlike other types of life insurance, once your income protection policy has paid out, your policy can pay out again in the future.

Another great perk of this cover is after you’ve claimed once, if you were to sadly get ill again, typically within a year, some providers may be willing to waive the deferral period meaning that your income protection payments can start again.

Can you have both?

Yes!

If it fits within your affordability, having both income protection and critical illness cover in place could never be a bad thing - you’ll get the best of both worlds.

If you’re still without cover, please don’t wait. We urge you to think about what your loved ones would do if you weren’t able to work as normal or if you became critically ill. To start your life insurance journey today, click the button below for your free quote.

Start your free life insurance quote