Two of the biggest questions we hear about critical illness cover (CiC) are around how much you need and what kind of pay out to expect. That’s why we created this calculator so our customers can work these things out for themselves and access our support if they need it.
The critical illness cover calculator you will find at the top of this page was specially designed for people who are applying for this type of protection insurance. Give it a try for free and don’t hesitate to reach out when you are ready to find the best CiC deal.
What our critical illness cover calculator can tell you
Our critical illness cover calculator can help you work out how much cover you need depending on what you want your payout to replace, and for how long. For example, you might be looking for cover that would replace your income for a period of two years.
The tool gives you the option to select various expenses as well as income, so you can calculate them as standalone payouts or pick and choose a combination of them. You can also enter a manual amount of coverage without doing any calculations, if you wish.
Once you have worked out a cover amount, our CiC calculator can then tell you how much a policy of that size will pay out based on the term length and coverage type.
How to use this calculator
To get any estimate for the amount of critical illness cover you need select one or more of the following from the checkbox provided to specific what the payout will be replace:
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Replace income
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Clear mortgage
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Clear other debts
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Adaptations & medical
The tool will then prompt you to input relevant amounts for each of these items and how many years you would like to be covered for. Alternatively, you can select the option to enter a manual amount of cover, if you have one in mind.
Once you have worked out how much CiC you need, you can then use this calculator to get an idea of how much a policy of that size will pay out. Enter the following to do this…
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Policy length: How many years you want to be protected for
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Coverage type: Select either level, decreasing or increasing term. For the latter two, you can set the percentage the payout will rise/fall by over time or use our defaults
Our calculator will then show you how much your policy will pay out depending on which year of coverage a claim is made in.
Example calculations
1. Combination Cover Example Calculation
In this scenario, a user wants to replace their income for 2 years and ensure their mortgage is cleared.
|
Expense Type |
Input Amount |
Duration |
Subtotal |
|
Replace Income |
£2,500 per month |
2 Years |
£60,000 |
|
Clear Mortgage |
£150,000 (Current Balance) |
N/A |
£150,000 |
|
Clear Other Debts |
£5,000 (Credit Cards) |
N/A |
£5,000 |
|
Adaptations & Medical |
£10,000 (Lump sum) |
N/A |
£10,000 |
|
TOTAL COVER NEEDED |
£225,000 |
2. Payout Projections by Coverage Type
Once you have determined your cover amount (e.g., £225,000), the calculator shows how that payout changes depending on the Coverage Type you select.
Example: £225,000 Policy Over a 25-Year Term
This table demonstrates how the payout behaves for Level, Decreasing, and Increasing terms.
|
Year of Claim |
Level Cover Payout |
Decreasing Cover Payout (e.g., 5% reduction) |
Increasing Cover Payout (e.g., 3% RPI) |
|
Year 1 |
£225,000 |
£225,000 |
£225,000 |
|
Year 5 |
£225,000 |
£185,000 |
£260,836 |
|
Year 10 |
£225,000 |
£135,000 |
£302,349 |
|
Year 20 |
£225,000 |
£45,000 |
£406,375 |
|
Year 25 |
£225,000 |
£0 |
£471,099 |
Get bespoke CiC quotes today
Benefits of this calculator
Our critical illness cover calculator is a great starting point for anyone who is planning to apply for this type of insurance. It can help with your initial research and give you a good idea of what to expect when the time comes to apply for your CiC policy.
You can use this calculator to…
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Work out home much cover you actually need
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Compare results across different coverage amounts
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Compare different policy lengths
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Compare how payouts vary across different policy types
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Work out how much payout you’d get depending on which year of the policy it is
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Explore different percentages for increasing and decreasing policies
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Budget effectively ahead of a CiC application
While this calculator is great for carrying out your initial research, bear in mind that all online calculators have their limitations. Any results this tool returns are not bespoke to you and may vary from the policies an insurance provider is prepared to offer you.
This is why it’s a good idea to speak to a dedicated protection insurance provider before you get started. They can provide you with bespoke calculations as well as personalised advice about how to get the best critical illness cover deal based on the numbers at hand.
How are critical illness cover costs calculated?
When you apply for critical illness cover, insurers don’t just pick a number out of a hat. Instead, they use a process called "underwriting" to assess the statistical likelihood of you making a claim.
Essentially, the riskier you appear to the insurer, the higher your monthly premiums will be. This calculation is based on a combination of your personal profile and the specific details of the policy you choose.
Personal factors that impact cost
Your individual circumstances are the biggest driver of the price you'll pay. Insurers typically look at:
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Age: This is the most significant factor. The older you are, the higher the statistical risk of developing a serious illness like cancer or suffering a stroke. Generally, the younger you are when you take out a policy, the cheaper it will be.
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Health and BMI: Insurers will ask about your height, weight, and medical history. If you have a high BMI or existing health issues, you might face "premium loading" (an increased price) or specific exclusions for certain conditions.
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Smoking and Nicotine Use: If you have used any nicotine products (including vapes and patches) in the last 12 months, you will be classified as a smoker. Because of the linked health risks, smokers can expect to pay significantly more - sometimes double - what a non-smoker pays.
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Family Medical History: If your parents or siblings have suffered from hereditary conditions (such as certain cancers or heart disease) before a certain age, insurers may increase your premiums or exclude those specific illnesses from your cover.
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Occupation and Hobbies: If you have a high-risk job (like working at heights or offshore) or enjoy dangerous hobbies (such as rock climbing or scuba diving), you may be charged more to account for the increased risk of injury or illness.
Policy choices that affect the price
The way you structure your plan also dictates the final cost:
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The Payout Amount (Sum Assured): Simply put, the more money you want the policy to pay out, the more it will cost. A £100,000 policy will always be more expensive than a £50,000 policy for the same person.
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Policy Term: The longer the policy lasts, the higher the cost. A policy that covers you until age 70 is more expensive than one ending at 55 because the likelihood of a claim increases as you get older.
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Level vs. Decreasing Cover: "Level" cover pays out the same amount throughout the term and is more expensive. "Decreasing" cover (often used to protect a repayment mortgage) sees the payout amount drop over time, making the premiums more affordable.
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Guaranteed vs. Reviewable Premiums: With guaranteed premiums, your cost stays the same for the life of the policy. Reviewable premiums start cheaper but are reassessed by the insurer every few years and almost always go up.
Can you lower the cost?
Yes. If you find a quote is too expensive, you can often bring the price down by:
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Reducing the payout amount to cover only your most essential debts (like the mortgage).
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Shortening the policy term to end when your children are independent or your mortgage is paid off.
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Improving your lifestyle, such as quitting smoking for at least 12 months, which can eventually lead to non-smoker rates.
Once you’ve run all of your calculations, the next step on your journey is to speak to an independent insurance adviser to ensure you get the best critical illness cover policy for your needs and circumstances. Get started here to begin a free, no-obligation chat with a CiC specialist who can help you secure the right cover at the best available price.
FAQs
The amount of cover you need depends on what you want the payout to replace and for how long. Our calculator allows you to select specific items like your income, mortgage, other debts, or potential medical adaptations to build a custom total. For example, you might choose a payout that replaces your salary for two years while you focus on recovery.