Critical Illness vs Income Protection: What's the Difference?

Critical illness pays a one-off tax-free lump sum for specific serious conditions (cancer, heart attack, stroke). Income protection pays a regular monthly income (50-70% of salary) if any illness or injury stops you working. Critical illness is for clearing debts; income protection is for replacing ongoing income. Many advisers recommend both.

Learn more about income protection in our detailed guide.

What's the difference between critical illness and income protection?

Critical illness pays a one-off lump sum if you're diagnosed with a specific serious condition (like cancer or heart attack). Income protection pays a regular monthly income if you can't work due to any illness or injury, until you recover.

Which is better, critical illness or income protection?

Neither is 'better' - they serve different purposes. Critical illness is better for paying off debts like mortgages. Income protection is better for replacing ongoing income. Many advisers recommend both if affordable.

Do I need both critical illness and income protection?

Ideally yes, as they complement each other. Critical illness covers serious conditions with a lump sum, while income protection covers any illness that stops you working. Together they provide comprehensive protection.

Which is cheaper, critical illness or income protection?

Income protection is typically cheaper because it only pays while you're ill. Critical illness can be more expensive, especially with higher cover amounts, because it pays a large lump sum for listed conditions.

Does income protection cover critical illness?

Income protection covers any illness that prevents you working - including critical illnesses. However, it pays monthly income rather than a lump sum. If you had cancer, income protection would pay while you're off work, but not a lump sum to clear your mortgage.

What does Martin Lewis say about critical illness vs income protection?

Martin Lewis generally recommends income protection as the priority if you can only afford one, as it covers any condition that stops you working. Critical illness is valuable but covers fewer scenarios.

Quick Answer

Should I Get Critical Illness or Income Protection?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Critical illness = lump sum for specific conditions (clear mortgage). Income protection = monthly income for any illness (replace salary). Different purposes - ideally get both if affordable.

This is one of the most common protection questions. Critical illness and income protection serve different purposes and aren't directly comparable. Critical illness provides a large one-off payment for serious conditions, ideal for clearing mortgages or funding treatment. Income protection replaces your regular income if you can't work for any medical reason.

Cover is subject to policy terms and conditions.

Key Points

1Critical illness: lump sum, specific conditions
2Income protection: monthly payments, any illness
3CI best for: clearing mortgage, major debts
4IP best for: ongoing bills, living costs
5IP covers more scenarios than CI
6Both together = comprehensive protection

Eligibility Criteria

Critical illness: claim on diagnosis of listed condition
Income protection: claim when unable to work
CI: typically can only claim once
IP: can claim multiple times if you recover and relapse
Both require health declaration at application

Typical Timeframe

Critical illness pays within weeks of diagnosis. Income protection pays after your chosen waiting period (1 day to 12 months) and continues until you recover.

Next Steps

1Assess your main financial risks
2Calculate mortgage/debt vs monthly costs
3Decide priority based on budget
4Get quotes for both to compare
5Speak to a protection adviser

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Related Questions

Critical illness insurance

Income protection

Is critical illness worth it?

What does critical illness cover?

For more detailed information about this topic, visit our comprehensive guide:

Protection

Jay Sabine

CeMAP Qualified

29 Years Experience

Content reviewed: January 2026

Side-by-Side Comparison

Feature	Critical Illness	Income Protection
Payout type	One-off lump sum	Monthly payments
What triggers claim	Specific listed conditions	Any illness/injury stopping work
How long it pays	One payment only	Until recovery/retirement
Can claim multiple times	No (policy ends)	Yes (if you recover)
Best for	Clearing mortgage/debts	Replacing monthly income
Typical cost	£30-60/month	£20-50/month

Which Should You Choose?

Prioritise Critical Illness If...

You have a large mortgage to protect
Family history of cancer/heart disease
You want to fund private treatment
Employer provides some sick pay

Prioritise Income Protection If...

You're self-employed (no sick pay)
Monthly bills are your main concern
You want cover for ANY illness
You're in a high-risk occupation