What's the Difference Between Critical Illness and Life Insurance?

Life insurance pays your beneficiaries when you die. Critical illness pays you a lump sum if diagnosed with a serious condition (cancer, heart attack, stroke) while alive. Different triggers: death vs diagnosis of illness. You can buy them separately or combined in one policy. Combined policies pay on either event (whichever first) and are typically cheaper than separate policies.

What's the difference between critical illness and life insurance?

Life insurance pays your family when you die. Critical illness pays you if diagnosed with a serious condition while alive. Different triggers: death vs diagnosis. You can combine both in one policy.

Ideally yes. Life insurance protects your family if you die. Critical illness protects you and your family during serious illness. Combined policies offer both protections at lower cost than separate policies.

Which is more important?

If you have dependents, life insurance is often considered essential. Critical illness is important if you have a mortgage or would struggle financially during serious illness. Many people need both.

Yes, combined life and critical illness policies are popular. They pay on death OR diagnosis of covered illness (whichever first). Cheaper than separate policies but only one payout possible.

Quick Answer

Should I Get Critical Illness or Life Insurance?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Different purposes: Life = pays family when you die. CI = pays you if seriously ill. Most people need both. Combined policies offer both at lower cost.

Life insurance and critical illness serve different purposes. Understanding the difference helps you build the right protection for you and your family.

Key Points

1Life: pays on death
2CI: pays on illness diagnosis
3Life: protects family after you're gone
4CI: protects during serious illness
5Combined policies available
6Both recommended for families

Eligibility Criteria

Both require health declaration
Age limits apply
Pre-existing conditions affect both
Lifestyle factors affect pricing

Typical Timeframe

Life insurance pays after death. Critical illness pays within weeks of diagnosis.

Next Steps

1Assess your family's needs
2Consider combined vs separate policies
3Calculate cover amounts needed
4Get quotes for both options
5Speak to protection adviser

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Should I Get Critical Illness or Life Insurance?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

Related Questions

Key Differences

People Also Ask

What Our Clients Say

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

Related Questions

Key Differences

People Also Ask

What's the difference between critical illness and life insurance?

Do I need both?

Which is more important?

Can I combine them?

What Our Clients Say