A framework for calculating CIC cover
There is no one-size-fits-all answer, but a good starting point is to add together the following:
- Outstanding mortgage balance — enough to clear your mortgage completely
- Immediate medical costs — private treatment, travel, home adaptations (typically £10,000–£50,000)
- Income buffer — 12–24 months of your net salary to cover the recovery period
- Debts — any outstanding loans, credit cards, or car finance
Example: Mortgage £220,000 + medical costs £20,000 + 12 months income £35,000 = £275,000 of cover needed.
Common coverage amounts
- £100,000 — minimum for most households without a mortgage
- £200,000–£300,000 — typical for a first-time buyer with young family
- £300,000+ — for higher earners or large mortgages
Standalone vs combined with life insurance
If you're buying CIC alongside life insurance, check whether a combined policy (paying on whichever comes first) provides better value. Your life insurance sum assured may be higher, so you may not need identical CIC cover.
Does the sum assured affect the premium much?
Yes — every extra £50,000 of cover adds to your monthly premium. Balancing adequate protection with affordability is key. An independent broker can model different scenarios.
Frequently Asked Questions
As a minimum, yes — but adding 20–30% for medical costs and income replacement is wise if your budget allows.
For standalone policies, yes. For combined life and CIC policies, it typically pays on whichever occurs first — you don't receive both payouts.