Life & Critical Illness Cover

If you’re looking to protect yourself and your loved ones financially if you’re diagnosed with a serious illness or pass away, life insurance and critical illness cover could offer a solution. Here, we’ll cover how combined life and critical illness cover works in the UK, how the costs compare, and where to get the best quotes.

Can you combine life insurance with critical illness cover?

Yes, life insurance and critical illness cover are often available as a single, combined policy. This means you’re protected in the event you pass away, or if you’re diagnosed with a serious medical condition listed in your policy.

With a combined policy, you’ll typically only be able to make one claim for critical illness or death, whichever comes first. If you claim for a critical illness and receive a lump sum payout, the policy usually ends, and your life insurance cover ends with it.

This type of policy can be a cost-effective way to get dual protection with a single monthly premium. However, some insurers don’t offer combined policies, and sometimes it might make more sense to get standalone policies for life insurance and critical illness cover.

Types of combined policies available

There are a few ways to arrange your combined life and critical illness cover, and the right protection plan will depend on your personal circumstances. Here are some examples of your main options:

Individual combined policies

If you’re taking out life insurance, you can often add critical illness cover for an additional fee. This gives you a single policy with dual protection. The life insurance pays out if you die, and the critical illness part typically covers major conditions like cancer, stroke, and heart attack.

You or your family can use the payouts however you like, and these policies are most beneficial if you want to cover large sums like a mortgage or replacing family income in case of death or serious illness. Some comprehensive whole-of-life insurance policies may also include critical illness cover.

Joint combined policies

This type of combined life and critical illness policy is usually taken out by couples or sometimes business partners. A joint policy covers two people under one plan and pays out once, either on diagnosis of a critical illness or upon the first death.

Joint policies can be cheaper than two individual plans. But, keep in mind that usually, after a claim is made, the policy ends, and the second person is no longer covered. It’s also worth making sure the insurer will allow you to split the policy to keep your cover should you separate.

Group combined policies

It’s always worth checking if you have any existing life insurance or critical illness cover provided by your employer or workplace. Combined group policies are sometimes provided as a benefit by employers.

The benefit is that you usually don’t have to pay the premiums to maintain the policy. The key drawbacks are that these policies are generally limited in terms of cover, you often don’t get much (if any) control, and if you move companies, your cover will likely automatically end.

Decreasing term combined policies

A particularly popular way to combine life and critical illness cover is with a decreasing term insurance policy. This arrangement can provide great value and is a common choice for people with an outstanding mortgage balance.

These policies tend to be cheaper because the amount of cover decreases over the term of your policy to mirror the outstanding balance on your mortgage. So, the cover is initially at its highest and gradually decreases as you pay down your mortgage.

How your application gets assessed

Here are some of the key areas insurers will look at when determining your eligibility and the cost of life and critical illness cover premiums:

• Age and health: General factors like age, height, and weight will play a significant role in your ability to get cover, and at what cost. The younger and healthier you are, the lower your premiums will likely be. But, alongside your health, insurers may also want to know about your family medical history.

• Lifestyle: Insurers will want details about your lifestyle habits, such as whether you exercise, how much you drink, and if you’re a smoker. You’ll also get asked about any extreme hobbies or activities (for example, rock climbing or scuba diving), and if you’re involved with organisations like the military.

• Level of cover: Choosing how much cover you need will impact your premiums. For example, you might want enough to pay off your mortgage. Or enough to support your family by multiplying your salary by several years. It’s not an exact science, but larger payouts usually mean higher premiums.

• Policy length: You’ll get the option to select how long you’d like your cover to last. Typically, short-term policies are cheaper, but longer policies can ensure you’re still covered when you’re at greater risk of illness or death in later years.

• Your occupation: The cost of insurance can depend on your job. For example, if you work in a potentially higher risk sector like the police, armed forces, or certain types of construction (perhaps working at heights or offshore), getting life and critical illness cover can be more complex or expensive.

• Premium structure: With some insurers, you can choose between guaranteed premiums (where the amount you pay stays the same), or reviewable premiums that fluctuate over time based on various factors like the performance of underlying investments.

• Additional benefits: Some policies may include extras like accident insurance, a terminal illness benefit, children’s critical illness cover, or extra financial support like funeral cost coverage. More expensive policies sometimes come with extra benefits for no added cost, but not always.

Get a life and critical illness cover quote online

If you’re looking to compare life and critical illness cover quotes online, you might find it complex and confusing. Various factors can impact your options and premiums, and the right policy will depend on your circumstances and needs.

An insurance advisor can quickly provide accurate quotes, often faster than online platforms. This is because they can determine the correct cover for your situation. They might suggest arranging standalone policies, or bundling your life insurance and critical illness cover into a single protection package.

If you’d like a free, no-obligation chat with an advisor specialising in life and critical illness cover, you can get started here:

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Is a combined policy worth it?

It depends on your situation. Combined life and critical illness cover can offer convenience and potentially better value than buying two standalone policies. Here’s how it compares to other options:

• Combined cover vs standalone policies: With combined cover, you only pay for one policy, and make one claim. It’s ideal if you want simple, affordable cover. But it does mean that if you claim for a critical illness, you’re no longer insured if you later pass away. With separate policies, you’ll pay more, but you could claim on both.
  Combined cover vs group policies: Some employers offer group life or critical illness cover as part of their benefits package. This can be a useful perk, but it’s often limited in scope, and the policy may end if you leave your job. A personal combined policy gives you control and continuous protection, regardless of your employment status.

How much does combined cover cost?

The cost of life and critical illness cover can vary widely based on the insurance provider, the level of cover you need, and your personal circumstances.

To give you an idea about the premiums, here are some average costs for combined life insurance with critical illness cover included, lasting 30 years for a non-smoker, and paying out £100k:

Best UK providers for combined cover

The best insurance provider to use for life and critical illness cover will depend on your situation and the level of protection you need, but here are some examples of popular UK providers:

• Aviva: A useful benefit with Aviva is that if you take out a joint policy, you can split it into single policies if you were to separate (joint life separation). Aviva offers life and critical illness cover, but not as a combined policy, so a successful critical illness claim won’t impact your life insurance.

• Legal & General: With Legal & General life insurance, you get accidental death benefit and terminal illness cover included at no extra cost. Although you can get life and critical illness cover with L&G, it will be two policies, so you could claim on both. You’ll automatically get children’s critical illness cover included, and joint life separation should you need it.

• Royal London: Policies with Royal London are only available through an advisor, but their ‘Life or Critical Illness Cover’ has some useful benefits. For example, unlike some policies, it will pay out for early forms of cancer (up to 50% of the cover amount with a £35,000 maximum).

If you want a better idea of the best UK life and critical illness providers based on your needs and circumstances, it’s worth having a brief discussion with an insurance advisor to see what your options are.

Why choose Teito for your life and critical illness cover?

Finding the best life insurance and critical illness cover isn’t always straightforward. Your individual circumstances and lifestyle will be unique, but expert support ensures you get complete protection that works for you, at a reasonable cost.

Our experienced advisors can find the most suitable and affordable protection plan for your needs, whether that’s standalone policies or combined cover. They can do this because they know which insurers can offer the best life insurance and critical illness cover options for any type of applicant.

Here are some more of the reasons people choose us to find them life and critical illness cover:

• We can get tailored quotes for life and critical illness cover

• Our advisors have 5-star ratings on leading review sites

• Your first chat is free, with no obligation to proceed

• Access to insurers with exclusive combined cover deals

Ready to take advantage of a free, no-obligation chat with an advisor specialising in life and critical illness cover? Get started here.