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

Save up on premiums: factors that affect your critical illness insurance premiums

When an insurance company underwrites a critical illness insurance application, there are several factors that they look into to determine the level of risk you present. They will base the premiums on that risk.

Remember, insurance is about covering a risk (at least, from the insurance company’s point of view). In this case, the insurance company would like to evaluate the risk of your being diagnosed with a critical illness. The higher the risk of getting critically ill, the higher your premiums will be.

It will do good to look at the different factors that the insurance company will consider. This will determine whether you will have lower or higher premiums for your policy.

How old are you?

Here are some helpful links to help you consider a critical illness policy for your age:

  • Age. The younger you are, the cheaper your policy will be. Some of the serious illnesses are more common for older ages (i.e. Alzheimer’s Disease or Motor Neurone Disease). Usually, insurance companies will issue the policy if you are between the ages of 18 to 60.

  • Health condition and medical history. The insurance company will check whether you already have a specified condition that could lead further to a critical illness. For instance, those with diabetes have a high chance of developing kidney failure or having a stroke. Conditions such as hypertension, being overweight or having diabetes can later worsen and can cause the critical illnesses being covered.

    If you are in good health condition, then you may be issued a standard policy, which will charge standard premiums. If you already have a pre-existing condition, then you may be charged with higher premiums or denied the coverage. The underwriter will also review other factors such as weight and a smoking habit.

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  • Family history.  The insurance company may also look at your family’s health history to see which illnesses you may be particularly prone to.

  • Lifestyle. This includes whether you are smoking or exercising regularly. Other sports, hobbies and past times that are considered dangerous may also result in denial of all claims caused by that hobby or sport, an increase in premiums or to denial of the policy application. Some sports and hobbies that may result in exclusion of increased premiums include:

    • Scuba diving
    • Rock climbing or mountaineering
    • Motor sports
    • Recreational flying
  • Level of coverage. Of course, the higher the coverage, the higher your premiums and if you opt for more benefits, this will naturally mean higher premiums. Know more about determining your level of coverage by reading How much critical illness insurance cover do I need?

  • Critical illnesses covered and definitions used. The number of critical illnesses covered and how they are defined will vary from policy to policy. Critical illness policies that use the ABI definition will be cheaper than those that use ABI+ (or an improved definition). It is up to you to decide whether you want a more comprehensive coverage in exchange for higher premiums.

  • Number of lives. There are critical illness policies that cover joint lives – this will have a higher premium than a single life cover but is actually cheaper than getting two separate critical illness covers.

  • Combined coverage. Another way you can save up on premiums is to consider getting the critical illness cover together with your life insurance policy.

Get many critical illness insurance quotes

You can also shop around to get quotes so that you can have the best deal. When reviewing the quotes of the various critical illness providers, be sure to not just look at the premiums quoted but also the level of coverage provided.

Last updated on: 18.1.2013

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