Protection

Life insurance vs critical illness cover: what is the difference?

These two often get confused, and they do very different jobs. One pays out if you die. The other pays out if you survive a serious illness. Many people benefit from both, layered together. Here is how they differ and how to think about which you need.

What life insurance does

Life insurance pays a lump sum (or a regular income, with some policies) if you die during the term of the policy. It is designed to clear a mortgage, replace lost income for your family, or cover other debts and costs so the people who depend on you are not left financially exposed.

What critical illness cover does

Critical illness cover pays a lump sum if you are diagnosed with one of a defined list of serious conditions, such as certain cancers, heart attack, or stroke, and you survive. The money is yours to use however you need: clearing the mortgage, funding treatment, adapting your home, or simply taking time off work to recover without financial pressure.

The key difference

Life insurance protects the people who depend on you after you die. Critical illness cover protects you and your family while you are alive but seriously unwell. For most working-age people with a mortgage and dependents, the risk of a serious illness before retirement is statistically higher than the risk of dying, which is why critical illness cover is so often under-bought relative to its importance.

Can you have both?

Yes, and many people do. They can be arranged as separate policies or combined. A combined policy can be more cost-effective but may pay out only once (on the first event, whether illness or death), whereas separate policies can each pay out independently. Which structure is right depends on your budget and priorities. This is a clear case where advice earns its keep, because the structure matters as much as the cover amount.

Important. Critical illness cover only pays out for the specific conditions and definitions set out in the policy. Not all illnesses are covered, and conditions must meet the policy's definitions. Always read the key features document and ask an adviser to explain what is and is not covered.

Not sure which is right for you?

That is exactly what we are here for. A quick conversation with an adviser will give you a clear answer based on your situation.

Review my protection Speak to a protection adviser

Major Money Matters Ltd is an appointed representative of Sesame Ltd.

Reviews

What our clients say

Real reviews from clients across Romford and Essex, verified on Google.

Rated 5.0 out of 5 from 92 Google reviews Read the reviews on Google

    
 
 
       Posted on Google  
   
   Paul Maysmith 
 
 
 
 Trustindex verifies that the original source of the review is Google. Always a great experience. Thanks to Mark Potter, Chantel Smith on the mortgage side and Oliver Alan on the insurance. Can't recommend the team highly enough.
  
 
      Posted on Google  
   
   Ramona Iuga 
 
 
 
 Trustindex verifies that the original source of the review is Google. 5 stars service,Mark and the team always offer a great service and support all the way,highly recommended.
  
 
      Posted on Google  
   
   Fancy Window Cleaners 
 
 
 
 Trustindex verifies that the original source of the review is Google. Excellent service from Mark and the team as always.
  
 
      Posted on Google  
   
   Kelly Sainty 
 
 
 
 Trustindex verifies that the original source of the review is Google. The second time we’ve used major money matters and cannot fault anything! Both Mark and Chantel as helpful as ever
  
 
      Posted on Google  
   
   Amy Phillips 
 
 
 
 Trustindex verifies that the original source of the review is Google. A huge thank you to Billy for all his support throughout my mortgage process. He was knowledgeable, approachable, and always happy to answer my questions, making everything easy to understand and much less stressful. His advice and guidance were invaluable, and I always felt confident I was in good hands. I really appreciate all his help and would highly recommend him to anyone looking for a fantastic mortgage advisor. Thank you, Billy!
  
 
      Posted on Google  
   
   Robert Larkey 
 
 
 
 Trustindex verifies that the original source of the review is Google. Top quality service no fuss straightforward advice and actioned quickly once right product decided on
  
 
      Posted on Google  
   
   Montell Chukwu 
 
 
 
 Trustindex verifies that the original source of the review is Google. I was recommended major money matters through a friend and they haven’t been short of fantastic, Oliver Potter who handle my mortgage offered a perfect service, can’t recommend them enough!
  
 
      Posted on Google  
   
   Billy Camden 
 
 
 
 Trustindex verifies that the original source of the review is Google. The whole team at Major Money Matters are an absolute dream to work with. Their expertise, speed and friendly approach made what we thought was going to be an arduous process quick and simple. Mark, Oli and Lee were always just a phone call away if we had any questions and provided clear and easy to understand advice/guidance. We would recommend their services to anybody.

Not sure which cover fits your situation?

A short call with the protection team maps the gaps and puts a recommendation in writing. No pressure, no obligation.

Book a quick 15-minute call Call 01708 629 983

We aim to return your call as quickly as we can. Mon to Fri 9am to 5pm. Weekend appointments available on request.