Critical Illness Cover Costs 2023
Over the past two years we have been receiving multiple enquiries relating to Critical Illness Cover and the costs for a protective policy.
The most common enquiry is to find out how much they can expect to pay for this type of product, but there is no individual fixed cost for Critical Illness Insurance. This is because there are many different variables that apply to each and every policyholder.
In today’s guide we take a look at some of the most common factors that will impact the price of Critical Illness Cover to give you a rough idea of costs for Critical Illness Cover in the UK:
What Is The Average Cost Of Critical Illness Cover?
What Is The Average Cost Of Critical Illness Cover?
The most straight forward answer is, there is no typical average monthly premium cost for Critical Illness Cover. This is because protection quotes will vary between insurers, the type of cover you require, and also how high risk you might be to an insurer. The risk element refers to how likely you are to become critically ill during the policy term, which will mean an insurer having to settle a claim against the policy.
A key point to remember is that generally, a Critical Illness Cover policy that cost the least are more than likely those which have the least conditions covered. A cheaper policy may also have the tightest policy conditions for when it will pay out for a claim.
As detailed in our many different guides on Critical Illness Cover, the number and range of conditions covered by a policy do vary dramatically between each insurer. However, there are seven key medical conditions that are covered by most Critical Illness protection policies:
Certain types of cancer
Coronary artery bypass
Heart attack
Kidney failure
Major organ transplant
Multiple sclerosis
Stroke
Another policy benefit offered by most insurers is called Permanent Disability caused by illness or injury. Some insurers include this without a monthly cost, whilst some providers offer it as an additional benefit with a small cost per month.
If you have started looking to get a Critical Illness Cover policy, it is important to select a policy that matches your individual needs to benefit you and your loved ones. Rather than solely basing a decision on the monthly premium cost alone. By using an FCA regulated broker, like Life Insurance Cover to compare Critical Illness Cover quotes can help you to find the best protection policy available at the best monthly premium cost.
How Is The Cost Of Critical Illness Cover Calculated?
Similar to Life Insurance monthly premiums, Critical Illness Cover monthly premiums are calculated by five key factors that relate to the individual obtaining a policy. The answers provided will impact how high the monthly premiums could potentially cost for a protection policy each month, they include:
The sum assured
Type of cover
Monthly premiums
Length of the policy
Personal factors
Does The Sum Assured Affect My Critical Illness Monthly Premium Cost?
For most people who start looking for a long term protection policy like Life Insurance or Critical Illness Cover commonly ask, what is a sum assured and what does it mean? In simple terms the sum assured relates to how much money your policy guarantees to pay if you have being diagnosed with a Critical Illness.
A key note to remember is the larger the sum assured, will likely mean higher monthly premiums.
Not all Critical Illness Cover policies offer the same level of protection and a claim against a policy might be refused. If you suffer from a less severe Critical Illness not listed in the terms and conditions, including early-stage cancer or a minor stroke for example. This could mean that the protection that you needed has failed to offer the security that you had sought.
Because of the importance of making the correct decision to get the best Critical Illness Cover that offers the best protection for the future. It is very important to either do extensive research by checking the terms and conditions or use an experienced FCA regulated broker when choosing a policy.
Do Different Type Of Cover Make Critical Illness Cover Cheaper?
When deciding on the affordability of a monthly premium for Critical Illness Cover, selecting either level or decreasing cover is often overlooked. This could be due to the amount of information provided when you compare Critical Illness Cover quotes. However, with any long term protection policy it is important to balance monthly premium cost against the type of cover you select. The types of Critical Illness Cover you can choose are:
Level Term: This type of cover is usually more expensive per month when compared against decreasing term. However, level term cover will pay out a fixed amount throughout the length of the policy term.
Decreasing Term: This type of cover is usually the cheapest available because the amount it will pay out reduces over the policy term. The monthly premiums will reduce each year making it much cheaper financially. However, you will need to decide if the lower sum assured will be sufficient towards the end of the policy term.
With the help of an FCA regulated broker, like Life Insurance Cover can help you to determine if Level term Critical Illness Cover or Decreasing Term will best suit your individual circumstances.
Can I Choose The Type Of Premiums I Pay For?
When choosing the type of monthly premiums for a Critical Illness Cover policy, affordability will be a key factor in your choice. The most common types of monthly premiums for Critical Illness Cover protection are:
Guaranteed Premiums: Also known as fixed monthly premiums are the most common type of premium chosen when taking out a policy. This is due monthly premium cost being cheaper over a full policy term. This premium type also provides peace of mind for the future knowing that your insurer will not increase the monthly premium cost.
Reviewable Premiums: This premium type is usually cheaper when first obtaining Critical Illness Cover. However, an insurer will usually review your monthly premiums after a few years. An insurer may also choose to review your policy on a regular basis, which may mean regular increases in monthly premium costs.
Will The Policy Length Make A Policy Cost More?
Many of the UK Critical Illness Cover Insurance providers offer protection policies until the policyholder turns 70 years old. This is due to a couple of key factors including finishing work due to retirement or other lifestyle choices. It is also worth noting that, the longer you are protected with a policy and the older you are at the end of the policy, the more expensive it will be.
Due to the increase to monthly premium costs for a Critical Illness Cover because of the length the policy being held. It is extremely important to consider and decide on when the best time to obtain Critical Illness Cover, including how long you need the policy to protect you.
By utilising an FCA regulated broker, like Life Insurance Cover can help you to identify the best time to obtain the right level of Critical Illness Cover protection for the future.
What Personal Factors Increase The Cost Of A Policy?
As detailed above, there are many ways to adjust certain elements of your Critical Illness Cover quote to make the premium affordable. However, there are a number of criteria that are not adjustable because they relate to your personal circumstances including:
Does My Age Increase The Cost Of Critical Illness Insurance?
Age is one of the key rating factors for Critical Illness Cover insurance providers which could mean you could either have very cheap premiums for the length of the policy, or more expensive premiums. If you are older when you obtain a Critical Illness Cover policy, and subsequently older when the policy ends, you are likely to have a more expensive monthly premium.
The reason for increased monthly premium costs is because the older you are, the increased risk you pose to your insurer. A key point to remember is that because as we get older, we are more likely to develop a serious illness later in life.
The most common time to obtain Critical Illness Cover is due to the arrival of young children, moving home, usually when policyholders are in their 30’s.
Does My Health & Medical History Impact The Cost Of Critical Illness Cover?
When you start to compare Critical Illness Cover and other long term protection Insurance policies, your current health and wellbeing is one of the important things an insurer will take into consideration.
As detailed in our guide making life insurance mistakes. If you choose to buy a Critical Illness Cover policy and do not inform the insurer that you have health or medical conditions, it could mean that your policy will cancelled and the provider may refuse to pay out.
If you do have health or medical conditions you can still obtain Critical Illness Cover, the cost of your policy might be a little higher, or exclusions may be applied. However, by using an FCA regulated broker who can compare all of the UK providers, like Life Insurance Cover, you could be surprised on the affordability of a protection policy.
During the application process, Critical Illness Insurers will ask questions about your medical history including your family. This helps them to identify any potential hereditary medical conditions which could affect your policy. After checking the medical and health history an insurer will:
Offer a policy on standard terms
Place an exclusion on the policy
Cover pre-existing conditions with a higher premium
Decline your application
Will My Lifestyle Increase Critical Illness Cover Costs?
During the application process for a Critical Illness Cover policy, an insurer will also ask about your lifestyle. As detailed in our Impaired Life Insurance Guide the greater the likelihood of making a claim against the policy will impact the monthly premium costs.
Depending on your employment or participation in a regular hobby which is deemed dangerous or high risk, an insurer may want to add an exclusion on your policy specifically identifying your employment or hobby. Not all Critical Illness Cover providers are the same, by using an FCA regulated broker, like Life Insurance Cover, can help you to identify the best provider for your individual circumstances.
A Critical Illness Cover insurance provider will also request information on other lifestyle choices when calculating your monthly premium costs. These choices include the amount of alcohol or narcotics that you may consume.
Does Smoking Increase The Cost Of Critical Illness Cover?
The simple answer is yes, smokers are more likely to pay more for Critical Illness protection. This due to the increased risk of suffering from a critical illness, including cancers, heart attacks and other serious medical conditions.
As a result, if your lifestyle choice is to be a smoker, you should expect to pay more for this type of cover to reflect the increased risk taken on by your insurer. However, many insurers will offer incentives for you to stop smoking and reduce your monthly premium costs. Once an insurer receives confirmation that you are a non-smoker via a medical assessment, your premiums will then be reduced.
Compare Critical Illness Cover Quotes
Deciding to obtain a Critical Illness Cover policy to protect you and your family for the future is something that requires thorough research. Alternatively by using an FCA regulated broker, like Life Insurance Cover to find the best protection policy for you. Can help you to compare Critical Illness Cover from all of the UK providers in one simple search. Our experienced team can help you find the best policy available, within your budget and offering peace of mind for the future.