What affects critical illness cover cost?
Critical illness cover premiums are set when you apply, based on:
- Age — the single biggest factor. The older you are, the higher the risk and the higher the premium.
- Health — pre-existing conditions, family history, and BMI all affect pricing.
- Smoking status — smokers typically pay 50–100% more than non-smokers.
- Sum assured — the lump sum you want paid out.
- Policy term — longer terms mean higher total premiums.
- Level vs decreasing — decreasing cover (linked to a mortgage) is cheaper.
Example prices: £100,000 level term CIC, 25-year term
Age 25, non-smoker, good health: £15–£25/month
Age 30, non-smoker, good health: £20–£35/month
Age 35, non-smoker, good health: £28–£48/month
Age 40, non-smoker, good health: £45–£75/month
Age 45, non-smoker, good health: £70–£115/month
Prices are illustrative. Actual quotes depend on your specific circumstances.
How does smoking affect the cost?
Smokers typically pay 50–100% more than non-smokers for the same cover. If you quit smoking for 12 months, you can apply as a non-smoker and significantly reduce your premiums.
Level vs decreasing critical illness cover cost
Decreasing cover (where the payout reduces over time, typically alongside a repayment mortgage) is around 20–30% cheaper than level cover. For income replacement, level cover is generally better value.
Combined life + CIC vs standalone
A combined policy (life insurance + CIC) typically costs less than two separate policies, but a claim on one component ends the other. Standalone CIC gives more flexibility.
How to reduce your CIC premium
- Buy earlier — premiums increase significantly with age
- Choose a shorter term if you have a specific end goal (e.g. mortgage payoff)
- Choose decreasing cover if the primary goal is mortgage protection
- Quit smoking — a full 12-month cessation can halve your premium
- Compare the whole market — prices vary by 30–40% between insurers for identical cover
Frequently Asked Questions
No — critical illness cover is typically more expensive than term life insurance for the same sum assured, because the probability of claiming is higher. You're much more likely to suffer a critical illness than to die during a 25-year term.
Yes — significantly. The cost of CIC roughly doubles for every 10 years of age. This is why buying earlier locks in lower premiums for the policy term.