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Critical illness insurance : What does it cost?

Type of premium

Reviewable premiums, may start off low, but tend to increase increasing every few years, or even every year. Critical illness insurance companies also retain the option to reduce benefits rather than dramatically increase premiums.

Renewable premiums are a variant of reviewable premiums, and are reviewable whenever the policy is due for renewal. This may be one year or five years.

Guaranteed premiums tend to be more expensive initially, but are fixed for the life of your policy, whether it is five or twenty-five years.

So, after a few years, that cheap reviewable premium may end up far more costly than the more expensive guaranteed rates. The extra peace of mind offered by a guaranteed rate may be worth having, although if you have a tight budget now but expect your income to rise faster in the future, then a reviewable premium may be better.

Basis of cost

Critical illness insurance companies set their own price. Although a few have a simple table of prices against benefits, this is rare for a full critical illness policy. Most policies are priced depending on

Cover chosen
Sum insured
Number of people covered
Age
Sex
Occupation
Hobbies and activities
Health
Smoking
Medical history
Family medical history

The process may need details from your doctor, a teleunderwriting interview with medically trained underwriters, a medical examination, or extra information as well as the completed proposal form.

Waiver of premiums

A waiver of premiums benefit may be included or available for an extra charge. As your policy is ongoing, you still have to pay your monthly/ annual premiums if you are not working due to illness. This will apply even during the weeks or months of claiming.

A Waiver of Premium benefit effectively pays the insurance premium for the weeks/months/years you are ill.

Increasing benefits premiums

Benefits can often be increased without further medical evidence every year, usually in line with increases in average prices or earnings, sometimes subject to a maximum annual increase (often 10% a year). The premium goes up with the benefits

Some policies also allow one-off underwriting-free increases (up to certain financial limits) on a life-changing event happening, such as marriage, the birth or adoption of a child or moving home and taking out a bigger mortgage. Extra premium applies here too.

Featured providers of critical illness insurance

The following critical illness insurance companies offer advice and quotes online or over the telephone.

PHA Insurance

You can choose a fixed premium now if you prefer and lock the insurance premium rate for the whole term of the cover.
Get a quote from PHA Insurance for critical illness insurance...

MoneySupermarket

Let the experts at MoneySupermarket find the right travel health insurance for you at the right price.
Compare critical insurance policies...