How Much Critical Illness Cover Do You Need?

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If you’re thinking about purchasing critical illness cover to protect yourself and your family in the event that you become unable to work due to illness or injury, you must consider your decision carefully. There are many, many providers on the market, making it difficult to know things like what critical illness insurer will be right for you, how much insurance to get, and which policy will work best for your needs.

If you’re uncertain about how much critical illness insurance you should get, and what it will cost you each month, read on. Think Plutus are experts in the critical illness insurance market and we’ve composed this guide to offer some general tips and information. If you want advice tailored to your situation, please feel free to get in touch and we’ll have a chat.

How much does critical illness insurance cost?

There are many variables that determine the cost of critical illness cover. These include how comprehensive the policy is, the policy type, the sum assured, the length of the term and various personal factors like age, lifestyle and medical history. Critical illness cover often comes as an add-on to life insurance in a single policy that offers both types of cover. You will want to factor this into the cost. Critical illness insurance can be taken out as a standalone policy, but most experts advise that it is more cost-effective to combine it with life insurance.

If you are diagnosed with any of the critical illnesses that are covered by your plan, you will receive a lump sum payout. Once that payout has been made, the life insurance element of any combined policy will be discontinued with the release of the payment. There are some plans, however, that will allow life insurance to continue after you receive a critical illness payout, so if this is appealing then be sure to speak to one of the expert advisers at Think Plutus.

How much should my monthly premium be for critical illness insurance?

As the previous section indicates, there is no such thing as an ‘average’ cost of critical illness cover as there are so many variables that influence the quote you receive.

For example, let’s say a healthy, 30-year-old non-smoker takes out £200,000 of life and critical illness cover for a 20-year period and pays £40 per month. At the age of 40, the monthly sum increases to £80 and then goes up to £200 by age 50 – age has a significant impact on the price of this policy type. (although this depends on the insurer and other client circumstances)

It may seem obvious to start your policy young in order to get the lowest monthly premiums, but you need to consider whether you’re likely to need the cover during the term you have it. If you’re uncertain whether the time is right to get critical illness insurance, or about how much you should buy, contact Think Plutus and our specialists can offer professional advice tailored to your circumstances.

How much critical illness cover should I take out?

The amount of critical illness insurance you need will depend on factors like how many dependents you have, your level of income, and current debts you have and other regular outgoings. Bear in mind that critical illness cover may give you access to the option of private medical treatment in the event that you are diagnosed with a critical illness, which can be preferable to relying on the NHS.

Different insurers will cover different critical illnesses, and policies that cover more conditions will incur higher premiums than those with fewer on the list. If you’re uncertain about the amount of critical insurance you should take out, make an enquiry with Think Plutus and we’ll help you with the calculations.

What factors impact the amount of cover I need for critical illness?

When you are making a decision about the amount of critical illness cover you will need, the questions you should ask yourself include:

  • How many children or other dependents do you have?
  • Are you the main breadwinner with a partner who relies on your income?
  • Are you currently paying off a mortgage? How much is outstanding?
  • Do you have other debts? How much is still owed?
  • What amount of money is required for your family to pay the bills and maintain their lifestyle?
  • Do you have savings, investments or other assets?
  • Do you receive any state benefits, or are you likely to receive any in future?
  • Do you want to make funds available to pay for private medical treatment?

Once you have answers to all those questions, you should be able to calculate a rough estimate of the amount of money you and your dependents will need. The idea is to be able to keep up the same quality of life in the event of being diagnosed with a critical illness.

If you’re having difficulty calculating your total debts or making accurate projections of costs and amounts needed, Think Plutus is just a phone call away. Our expert advisers can help you with this process.

Speak to an expert adviser and find out how much critical illness cover you will need

When you commit to taking out critical illness insurance, it is of paramount importance that you choose the provider and policy that meets your specific needs. You must also take out the right amount of cover to ensure that you aren’t coming up short if you are diagnosed with a critical illness. The specialist advisers at Think Plutus have whole-of-market access and are waiting to hear from you to give their expert advice for your needs. We will work with you to make an accurate estimation of the amount of cover you will need and help you understand how much it is likely to cost you if you go with the right insurer.

Our advisers are experienced, highly-qualified and regulated by the Financial Conduct Authority so you can put your faith in us. To learn how much critical illness cover you need and find the best policy for you, Think Plutus.

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