What's the Difference Between Critical Illness and Health Insurance?

Critical illness pays a tax-free lump sum to you if diagnosed with specific serious conditions (cancer, heart attack, stroke) - money is yours to use however you choose. Health insurance pays for private treatment costs for any condition - money goes to healthcare providers. Different purposes: CI for financial protection (clear mortgage), health insurance for treatment access (skip NHS waits).

What's the difference between critical illness and health insurance?

Critical illness pays YOU a lump sum for specific serious conditions. Health insurance pays for TREATMENT costs for any condition. Different purposes: CI for financial protection, health insurance for private treatment access.

They complement each other. CI provides financial security during serious illness. Health insurance provides faster access to treatment. If budget allows, both provide comprehensive protection.

Which is more expensive?

Health insurance is typically more expensive (£50-150+/month). Critical illness varies by cover amount (£30-50/month for £100k). Costs depend on age, health, and level of cover.

Which is more important?

Depends on your priority. If you want private treatment access, health insurance. If you want financial protection to clear debts during illness, critical illness.

Quick Answer

Should I Get Critical Illness or Health Insurance?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Different purposes: CI = lump sum for serious illness (financial protection). Health insurance = private treatment costs (treatment access). They complement each other.

Critical illness and health insurance serve different purposes. Understanding the difference helps you choose the right protection, or decide whether you need both.

Key Points

1CI: lump sum paid to you
2Health: treatment costs paid for you
3CI: specific serious conditions
4Health: any condition treated privately
5CI: financial protection focus
6Health: treatment access focus

Eligibility Criteria

Both require health declaration
Pre-existing conditions affect both
Age limits apply to both
Lifestyle factors affect pricing

Typical Timeframe

CI pays within weeks of diagnosis. Health insurance covers treatment as you receive it.

Next Steps

1Identify your main priority
2Consider if you need both
3Get quotes for each option
4Compare coverage and costs
5Speak to protection adviser

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Should I Get Critical Illness or Health Insurance?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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Side-by-Side Comparison

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What's the difference between critical illness and health insurance?

Do I need both?

Which is more expensive?

Which is more important?

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