If you want financial protection in the event of a serious illness or death, a combined life and critical illness policy could provide the comprehensive cover you need.
In this guide, we’ll explain how combined life and critical illness cover works in the UK, how it compares in cost to standalone policies, and where to find the best quotes to ensure you and your loved ones are properly protected.
Can you combine life insurance with critical illness cover?
Yes, life insurance and critical illness cover are often available as a single, combined policy. This type of policy provides financial protection if you pass away or are diagnosed with a serious medical condition listed in the policy terms.
With a combined policy: You can only make one claim—either for a critical illness or for death, whichever happens first. If you claim for a critical illness and receive a lump sum payout, the policy usually ends and your life cover is no longer active. It’s often a cost-effective option, offering two forms of protection under a single monthly premium.
However, it’s important to note: Not all insurers offer combined policies. In some cases, taking out separate standalone policies for life insurance and critical illness cover can offer greater flexibility, especially if you want your life insurance to remain in place after a critical illness claim.
A specialist insurance adviser can help you compare both options to determine which structure provides the best value and long-term protection for your needs.
Types of combined policies available
There are several ways to structure a combined life and critical illness policy, and the best option will depend on your personal needs, financial goals, and lifestyle. Below are the main types of arrangements:
Individual Combined Policies
This is one of the most common setups. When taking out life insurance, you can often add critical illness cover for an additional premium. This creates a single policy offering dual protection:
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Life cover pays out if you pass away
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Critical illness cover pays out if you're diagnosed with a major condition like cancer, stroke, or heart attack
These policies are particularly useful if you’re protecting large financial obligations like a mortgage or replacing family income in the event of serious illness or death. Some comprehensive whole-of-life policies may also include critical illness benefits.
Joint Combined Policies
Ideal for couples or business partners, a joint combined policy covers two people under one plan. The policy pays out once only—either on the diagnosis of a critical illness or the first death.
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Often cheaper than taking out two individual policies
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After a claim is made, the policy usually ends, leaving the second person without cover
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Some insurers allow the policy to be split if the relationship ends, but this should be confirmed at the outset
Group Combined Policies
Some employers offer combined life and critical illness cover as a workplace benefit. If available, this is a cost-free or low-cost option for employees.
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No premiums for the employee
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Cover is often limited and non-customisable
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If you leave your job, the policy will usually end automatically, and you may not be able to transfer it
Decreasing Term Combined Policies
These are particularly popular for covering a repayment mortgage. The level of cover decreases over time, in line with your outstanding mortgage balance.
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More affordable than level term policies
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Suitable if your primary concern is paying off your mortgage in the event of death or serious illness
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The payout is highest at the beginning and reduces over the life of the policy
How your application gets assessed
When applying for combined life and critical illness insurance, insurers assess several key factors to determine your eligibility and monthly premium. Here’s what they typically consider:
Age and Health
Your age, height, weight, and overall health are major factors in the cost and availability of cover.
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The younger and healthier you are, the more affordable your premiums are likely to be.
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Insurers may also consider your family medical history to assess potential hereditary risks.
Lifestyle
Your everyday habits can impact your risk profile:
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Insurers will ask whether you smoke, how often you drink, and whether you engage in regular exercise.
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High-risk hobbies (e.g. rock climbing, scuba diving) and involvement with hazardous occupations—such as the military—can also increase premiums or limit cover options.
Level of Cover
The higher the payout you're seeking, the more you’ll pay in premiums.
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Many people choose cover that will pay off a mortgage, or replace their salary over several years.
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There's no exact formula, but a larger sum assured results in higher monthly costs.
Policy Length
You can choose how long you want your cover to last—commonly 10, 20, or 30 years, or even until a set retirement age.
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Shorter terms are cheaper but may leave you unprotected later in life.
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Longer terms offer more security but come at a higher premium.
Occupation
Your job can affect how risky insurers consider your policy to be.
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High-risk professions—such as police work, offshore construction, or armed forces roles—can lead to higher premiums or additional underwriting.
Premium Structure
Most insurers offer two main types of premium:
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Guaranteed premiums – Stay the same throughout the policy term, offering long-term price certainty.
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Reviewable premiums – Can change over time, often starting lower but increasing based on factors like age, market conditions, or claims history.
Additional Benefits
Some policies include added extras, either as standard or optional add-ons:
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Terminal illness benefit
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Children’s critical illness cover
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Accidental death or injury cover
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Funeral cost contributions
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Some higher-cost policies bundle in extras at no extra charge, while others charge for each add-on separately.
Is a combined policy worth it?
It depends on your situation. Combined life and critical illness cover can provide convenience and may offer better value than purchasing two separate policies. Here’s how it compares to other options:
Combined cover vs standalone policies: With combined cover, you pay for just one policy and can make only one claim. It’s a great option if you’re looking for straightforward, affordable protection. However, if you make a claim for a critical illness, your cover will end, and you won’t be insured if you pass away later. With standalone policies, you’ll pay more overall, but you have the ability to claim for both events.
Combined cover vs group policies: Some employers include group life or critical illness cover as part of their employee benefits. While this can be a valuable perk, it’s usually limited in terms of coverage and will likely end if you leave the company. A personal combined policy, on the other hand, gives you full control and uninterrupted protection, no matter where you work.
How much does combined cover cost?
The cost of life and critical illness cover can vary widely based on the insurance provider, the level of cover you need, and your personal circumstances.
To give you an idea about the premiums, here are some average costs for combined life insurance with critical illness cover included, lasting 30 years for a non-smoker, and paying out £100k:
| Age | Average monthly life and critical illness cover cost |
| 20 | £3 - £6 |
| 30 | £29 - £36 |
| 40 | £57 - £74 |
Best UK providers for combined cover
The best insurance provider to use for life and critical illness cover will depend on your situation and the level of protection you need, but here are some examples of popular UK providers:
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Aviva: A useful benefit with Aviva is that if you take out a joint policy, you can split it into single policies if you were to separate (joint life separation). Aviva offers life and critical illness cover, but not as a combined policy, so a successful critical illness claim won’t impact your life insurance.
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Legal & General: With Legal & General life insurance, you get accidental death benefit and terminal illness cover included at no extra cost. Although you can get life and critical illness cover with L&G, it will be two policies, so you could claim on both. You’ll automatically get children’s critical illness cover included, and joint life separation should you need it.
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Royal London: Policies with Royal London are only available through an advisor, but their ‘Life or Critical Illness Cover’ has some useful benefits. For example, unlike some policies, it will pay out for early forms of cancer (up to 50% of the cover amount with a £35,000 maximum).
If you want a better idea of the best UK life and critical illness providers based on your needs and circumstances, it’s worth having a brief discussion with an insurance advisor to see what your options are.
Frequently Asked Questions
It depends. If you only have life insurance, you’re protected only if you pass away. If you only have critical illness cover, you won’t be protected if you suddenly die. Combined cover gives you the best of both, a lump sum payout if you die or if you’re diagnosed with a serious illness.