Discover why investing in income protection insurance and critical illness cover is essential for some mums.
Income protection insurance and critical illness cover are two types of policies that can really give mums that peace of mind they desire more than anything. Both act as a safety net to protect your family financially. But, both cover you in quite different scenarios.
In this guide we’ll explain the key differences between income protection insurance and critical illness cover. We’ll also take you through the benefits and drawbacks of both types of policy to help you decide which option is right for you.
Read on to learn all you need to know about income protection insurance and critical illness cover as a mum.
Income protection insurance vs critical illness cover: key differences
As a mum, your little ones’ happiness and welfare is at the heart of everything you do. With this in mind, for many mums, ensuring you have the correct level of both income protection insurance and critical illness cover is an absolute must. But, what is the difference between the two types of policies? Let’s learn more.
Critical illness cover usually pays out a lump sum in the event that you are diagnosed with one of the illnesses outlined in your critical illness cover terms and conditions. Most critical illness policies will cover you if you suffer any of the below:
- A stroke
- A heart attack
- A traumatic head injury
- Certain types of cancer (many policies usually exclude non-invasive forms of cancer)
- Multiple sclerosis
- Parkinson’s disease
- Alzheimer’s disease
Income protection insurance is quite different to critical illness cover. Firstly, income protection insurance pays out a percentage of a mum’s salary on a monthly basis when they are unable to work for a prolonged period of time due to an illness or injury.
Secondly, the types of injuries and illnesses you are covered for are usually of a less-serious nature. Income protection insurance will generally pay out provided you have been deemed unable to work by a healthcare professional. This can be on a long or short-term basis as long as it is more than 4-weeks.
Income protection insurance vs critical illness cover: which is right for me?
When considering whether to purchase critical illness cover, income protection insurance or both, you should consider the following:
- What policy premiums can you afford to work into your monthly budget? Take a closer look at your budget and work out which type of insurance is most affordable.
- Existing debts. Your mortgage and any other outstanding debts you may have will still need to be paid in the event of your death or incapacity to work. What financial responsibilities will you have regardless of any unforeseen health issues that may arise?
- Monthly outgoings. Are utility bills and food shops largely your responsibility in your household? These are unavoidable expenditures for mums. If you want to ensure that these are covered whatever life throws your way, both income protection insurance and critical illness cover could be the life line you’re after.
- Childcare and educational costs. Nursery fees, before and after school clubs, and extracurricular activity costs quickly add up. You’ll need to factor all these costs in when deciding between income protection insurance and critical illness cover.
- Your family’s reliance on your income. How important is your income to your family? If you’re the breadwinner or are in an equal-earnings household and the loss of your income would be detrimental, investing in both income protection insurance and critical illness cover could be a smart move.
Income protection insurance vs critical illness cover: how much does each policy cost?
In general, income protection insurance will set you back somewhere between £10-£80 per month. But, there are a number of factors that affect the price of the policy. We’ll explore these in just a moment.
Critical illness cover usually comes with a monthly premium ranging anywhere from £7.50 per month right up to £100+ per month. Again, this type of policy takes the same range of factors into account as income protection insurance and all will have an impact of the price of your policy.
What affects how much income protection insurance and critical illness cover costs?
There are three main factors that impact the price of any insurance policy including income protection insurance and critical illness cover. These are:
- The general rule of thumb is the older you are, the more expensive your policy is likely to be. This is usually the case for both critical illness cover and income protection insurance too.
- Overall health. Medical history also has a major impact on your income protection insurance and critical illness policy fees. In the event that you have already been diagnosed with an underlying health issue, your policy is likely to be much pricier if available at all.
- Lifestyle in general. Are you a smoker? How much alcohol do you consume on a weekly basis? How active a lifestyle do you have? All of these will impact the overall cost of your income protection insurance and critical illness cover policies.
Other things that can also impact the cost of income protection insurance and critical illness cover are the length of the policy and the level of cover. The longer you want a policy to last will ultimately impact the price. The level of cover required will also impact your premium. In simple terms, the level of cover refers to how much you’ll want or need the policy to pay out.
Why secure income protection insurance and critical illness cover as a mum with Mummy Insurance
At Mummy Insurance, we’re dedicated to delivering quotes from all the top UK insurers. We’ll also help you to conduct a full comparison of your income protection insurance and critical illness cover options to ensure you find the right fit for you. We can help you compare prices side by side to make a cost-effective choice. All of our quotes are completely personalised and our experts are always on hand to help guide mums through the entire purchasing process.
