Protection comparison
One replaces your monthly income. The other pays a lump sum on diagnosis. Here is how they differ, which claims more often, and when it makes sense to hold both.
Step 2 of 3
Takes 60 seconds
Everything here is optional — it just sharpens your quotes.
No credit check. No obligation. Your details go to one FCA-regulated adviser only.
Income protection insures your ability to earn. Critical illness cover insures against a specific diagnosis. That single distinction drives everything else — how often each pays out, what it costs, and how long the money lasts.
Pays a monthly, tax-free benefit after a deferred period of your choosing, for as long as illness or injury keeps you out of work. Covers everything from a slipped disc to long-term illness or a mental health condition.
Pays one tax-free lump sum if you are diagnosed with a condition on the insurer's list and it meets the policy definition. Common inclusions are certain cancers, heart attack, stroke and multiple sclerosis.
| Feature | Income protection | Critical illness cover |
|---|---|---|
| How it pays | Monthly benefit, tax free | One-off lump sum, tax free |
| What triggers a claim | Any illness or injury that stops you working | Diagnosis of a condition on the policy list |
| How long it pays | Until you recover, retire or the term ends | Once — the policy usually ends after payout |
| Typical amount | 50–70% of gross salary | Often £50,000–£250,000, or your mortgage balance |
| Covers mental health and back pain | Yes, if it stops you working | Rarely — not usually listed conditions |
| Pays if you keep working | No | Yes, diagnosis alone can trigger the claim |
| Relative cost | Lower, and adjustable via deferred period | Higher for a meaningful sum assured |
| Best for | Replacing day-to-day earnings | Clearing a mortgage or funding treatment costs |
Cover terms, listed conditions and definitions vary by insurer. Always check the policy wording before you buy.
Many people combine a smaller critical illness sum with income protection: the lump sum absorbs immediate shocks, the monthly benefit keeps the household running. If budget is the constraint, extending the income protection deferred period to six months frees up premium for critical illness cover without dropping either.
Tell an adviser your total monthly budget and they will split it between the two.
Income protection pays a regular monthly benefit while illness or injury stops you working, and continues until you recover, retire or the policy ends. Critical illness cover pays a single tax-free lump sum if you are diagnosed with a specific condition listed in the policy, such as certain cancers, heart attack or stroke — whether or not you stop working.
Neither is universally better; they solve different problems. Income protection is generally the higher priority because it pays out for any illness or injury that stops you working, including the common causes of long absence such as back problems and mental health. Critical illness pays a larger sum up front and is better suited to clearing a mortgage or funding treatment and adaptations after a serious diagnosis.
Income protection generally claims more often, because it responds to any condition that prevents you working rather than a fixed list of diagnoses. Critical illness only pays if your diagnosis matches the policy definition, and the severity wording matters — a condition can be serious yet still fall outside the definition.
Critical illness cover is usually more expensive for a meaningful sum assured, particularly at older ages, because insurers price for a large single payout. Income protection can be tuned down by extending the deferred period or capping the benefit period, which makes it comparatively affordable for many people.
Yes, and it is a common combination. Income protection replaces day-to-day earnings while critical illness provides a lump sum for one-off costs such as mortgage repayment, home adaptations or private treatment. A broker can balance the two within a set monthly budget.
Not on that basis alone. Critical illness pays on diagnosis of a listed condition meeting the policy definition, regardless of whether you keep working. If your concern is losing earnings from any cause, income protection is the product that addresses it directly.
For most working people the sensible order is income protection first, because loss of earnings is the more likely and more financially damaging event, then critical illness cover added later as budget allows. If you have a large mortgage and a family history of serious illness, some advisers reverse that order.
A regulated adviser will compare both across Aviva, Royal London, LV=, The Exeter, Legal & General and others, and show you the trade-off in pounds.
Compare protection quotesTakes 60 seconds. No obligation.