Income Protection vs Critical Illness Cover: What's the Difference?
Income protection and critical illness cover are often confused — but they serve different purposes. Understanding the difference can help you decide what may be appropriate for your circumstances.
What Is Income Protection?
Income protection pays a regular monthly income if you're unable to work due to illness or injury. It replaces a portion of your earnings until you recover or the policy term ends.
What Is Critical Illness Cover?
Critical illness cover pays a one-off lump sum if you are diagnosed with a specific serious condition listed in the policy. Common examples may include: cancer, heart attack, stroke. Payment is made once, rather than monthly.
Key Differences
| Income Protection | Critical Illness Cover |
|---|---|
| Monthly payments | Lump sum payment |
| Covers broader range of incapacity | Covers specific listed illnesses |
| Can pay long-term | One-time payout |
Can You Have Both?
Yes. Some people choose to combine both policies for broader protection. An adviser can explain how each works and whether either — or both — may be appropriate.
If you'd like to explore income protection insurance tailored to your situation, you can speak with an FCA-authorised adviser — get started in around 60 seconds.
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An FCA-authorised adviser can explain how income protection works for your situation.
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