Income Protection vs Critical Illness UK: Which Do You Need?
Critical Illness Cover sounds like the policy you need. The cover everyone forgets pays out when the CIC claim gets denied on a narrow definition. Which one wins on the maths.
Income Protection vs Critical Illness Cover (35yo non-smoker)
| Policy | Cost / month | Payout | Best for |
|---|---|---|---|
| Income Protection (£30k/yr to 65) | £30 - £60 | Monthly income, as long as needed | Most working-age adults |
| Critical Illness Cover (£100k lump sum, 25-yr term) | £20 - £40 | One-off lump sum on diagnosis | Mortgage protection |
| Both combined | £50 - £100 | Stacked benefits | High mortgage + dependants |
Office worker, £50k salary. Always choose own-occupation IP over any-occupation.
Key takeaways
Income Protection pays a regular monthly income (typically 50-65% of salary) if you cannot work due to illness or injury, until recovery, retirement, or policy end
Critical Illness Cover pays a one-off lump sum if you are diagnosed with a defined serious illness (cancer, heart attack, stroke, etc.)
Income Protection wins on probability - long-term sickness is far more common than serious illness, and most CIC claims are denied for narrow definitions
For working-age people without 12+ months of cash savings, Income Protection is one of the highest-value insurance products available; Critical Illness is largely optional