Critical Illness Cover Calculator
Estimate the right critical-illness lump-sum cover and annual premium for your situation.
How Much Critical Illness Cover Is Right?
A common rule of thumb is 3–5× annual income, plus enough to clear major debts and fund 12–24 months of recovery. Critical illness cover pays a tax-free lump sum on diagnosis of one of a defined list of serious illnesses, so the money can be used however you need it — treatment, mortgage payments, home modifications, or simply replacing lost income while you recover.
What drives the premium
- Age — premiums roughly double every 10 years after age 35.
- Smoker status — smokers pay roughly 1.7–2.2× non-smoker rates.
- Gender — women typically pay slightly less for CI cover.
- Cover term — longer terms cost more per year because you lock in cover at later ages.
- Pre-existing conditions — can lead to loadings or exclusions; not modelled here.
What critical illness insurance pays for
Critical illness cover pays a lump sum on diagnosis of a covered serious condition — typically cancer (excluding most early-stage cancers), heart attack, stroke, multiple sclerosis, kidney failure, major organ transplant, coronary artery bypass, and a long list of less common conditions. The payout is yours to use however you want: replace income while you cannot work, pay for treatment not covered by health insurance, clear the mortgage, pay caregivers, or simply protect the family's standard of living during the recovery period. It is not health insurance — it pays cash, not medical bills.
How much cover is enough
A practical baseline is 12–24 months of household after-tax income, plus any outstanding short-term debt. Someone earning £45,000 net with a £200,000 mortgage might target £100,000–£150,000 of critical illness cover — enough to clear high-interest debt, fund 12 months of recovery without touching savings, and pay for treatment options not available on the NHS. Households with smaller emergency funds need more cover; households with substantial savings can carry less.
What changes the premium
- Age — by far the biggest factor. Premiums double roughly every decade between 30 and 60.
- Smoking status — smokers pay 60–120% more than non-smokers. "Non-smoker" usually means no nicotine of any form (including vaping and nicotine patches) in the last 12 months.
- Health and family history — heart disease, cancer, diabetes, hypertension, and family history of early-onset serious illness all raise premiums or trigger exclusions.
- BMI — significantly above or below normal range adds premium.
- Occupation — typically less impact than for income protection, but still relevant for some hazardous occupations.
- Cover level and term — longer terms and higher sums insured raise premiums; level cover costs more than decreasing cover designed to mirror a mortgage balance.
Common pitfalls in claims
- Non-disclosure on application. Insurers verify medical records on claim. Anything material that was not disclosed — even unintentionally — can void the policy.
- Conditions excluded by definition. "Heart attack" requires specific diagnostic criteria (raised troponin, ECG changes, characteristic symptoms). A "minor cardiac event" or "near miss" usually does not qualify.
- Early-stage cancers excluded. Most policies exclude carcinoma in situ, early prostate cancer (Gleason ≤6, T1a/b), and basal/squamous cell skin cancers.
- Survival period. Most policies require the policyholder to survive 10–28 days after diagnosis for the claim to pay.
Stacking with other cover
Critical illness is most useful as a layer alongside (not replacing) life insurance and income protection. Life insurance pays on death; income protection pays a monthly benefit while you cannot work; critical illness pays a lump sum on diagnosis. The three solve different problems and most adults with dependants and a mortgage benefit from all three at appropriate levels.