How each one pays
Critical illness cover pays a single tax-free lump sum when you are diagnosed with a condition on the policy's list, such as certain cancers, a heart attack or a stroke, as long as it meets the policy definition. You can spend it on anything: clearing the mortgage, adapting your home or taking time off.
Income protection pays a regular monthly amount after a deferred period if you cannot work because of illness or injury. It keeps paying until you return to work, reach the end of the policy or hit a payment limit you chose.
What each one covers
Critical illness cover only pays for the conditions listed and defined in the policy. A bad back, a broken leg or a long spell of stress would not usually count, even if they stopped you working.
Income protection looks at whether you can work, not at what caused the problem. That makes it broader. Mental health conditions and musculoskeletal problems, two common reasons people take long periods off, can lead to an income protection claim.
- Critical illness: listed serious conditions
- Income protection: any illness or injury that stops you working
- Critical illness: pays once, then the cover ends
- Income protection: can pay more than once over the term
When each one fits best
Critical illness cover suits a big one-off need, such as clearing a debt or giving you breathing space while you recover. It can help even if your employer pays you during sick leave.
Income protection suits anyone whose household relies on their monthly earnings, especially the self-employed and people with little sick pay. It replaces the income that pays the bills month after month.
Holding both
Many people use the two together. Income protection covers the monthly bills, and critical illness cover provides a lump sum for larger costs or the mortgage. If your budget only stretches to one, think about which risk would hurt your household more.
Your advice should take account of employer sick pay, savings and any cover already in place.
How Hi Tomorrow helps you choose
We look at your job, sick pay, savings and debts, then suggest which cover, or which mix, protects you best for the money you want to spend. We explain the trade-offs in plain words.
We compare both types across our panel, including definitions and deferred periods. Acceptance and terms are subject to the insurer's underwriting.