Why cover?
  • affects 1 in 4 women / 1 in 5 men before retirement
  • 94.1% of the critical illness claims are paid
  • protect yourself and your family if you get seriously ill
Why us?
  • get the cover that will pay when you need it
  • save up to 35%, cover from £5 a month
  • free, fast and without obligation quotes
Insurers: Aviva, Legal & General, Liverpool Victoria, Scottish Widows, Vitality, Zurich

Combined life with critical illness insurance: Is this a better deal?

With a combined life and critical illness insurance policy, you are protected either way – if you pass away during the policy’s effective date, then your beneficiaries can get the death benefits. If you get critically ill, then you get the lump sum to help with your daily expenses as well as your medical expenses.

You can get some savings in combining your life insurance and critical illness insurance policies in one package. Combining them in one package will be cheaper than buying two separate policies.

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One other advantage of the combined life and critical illness insurance is that for standalone critical illness policies, there is a waiting period after the insured is diagnosed with a covered serious illness. For instance, if he gets critically ill the claimant needs to survive within the waiting period before his claim can be paid. The usual waiting period is from 15 to 90 days. With a combined policy, the claimant can get the insurance benefits regardless of whether the Insured survives or not.

Some Considerations

Before you decide on getting a combined life and critical illness insurance policy, you should also study the implications about the policy. There are combined policies that treat the two coverages as separate – that means that you can claim for both.

However, there are some combined policies that provide only one coverage. Thus, before you get a combined policy, you should check what kind of coverage you have – whether the life coverage will still persist even after you have claimed from your critical insurance cover.

Separate Policies or Combined Policy? Weighing the Pros and Cons

  Separate Life and Critical Illness Policies Combined Life and Critical Illness
  • You get to keep the life coverage even after you make your serious illness claim. Your beneficiaries get to receive the life insurance payout upon your death.
  • More flexibility, since you can buy these at separate times, depending on your specific individual needs. For instance, if you are single, you can buy critical illness first and then buy life insurance at a time when you get married and start having dependents.
  • Cheaper premiums.
  • Double protection provided.
  • Can consolidate riders under the single policy.
  • More expensive.
  • Need to take out riders for each policy.
  • May only pay for one event. If you have already claimed for the lump sum from the critical illness cover, the policy will no longer be effective. Getting only this policy may jeopardize your need for insurance coverage at this crucial time.

Considering a Buyback Option

If you do opt for a combined life and critical illness, a buyback option is advisable. This allows you to buy a new life insurance cover, in the event that you make a successful critical illness claim. This enables you to still get cover at a time when other providers will deny your application because of your medical condition after the claim. Of course, the buyback option comes with extra premium.

Learn more about beefing up your protection program in our article about extending critical illness insurance or think about additional riders.

Last updated on: 18.1.2013

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