Protecting Your Future: Income Protection vs. Critical Illness Cover
- Andrew Russell
- Nov 5
- 3 min read
When you’re buying your first home or starting a family, you plan for everything: the mortgage, the nursery, even the garden furniture. But what about the unexpected?
That’s where protection insurance comes in. Two of the most common options are Income Protection and Critical Illness Cover, and while they sound similar, they do very different jobs.
Let’s break it down so you can make the right choice for you and your family.
What is Income Protection?
Income Protection is designed to replace part of your income if you can’t work due to illness or injury.
It’s not about getting a lump sum, instead it pays you a regular monthly benefit (usually up to around 60% of your income) until you’re well enough to return to work or until the policy ends.
Covers a wide range of illnesses and injuries (not just serious ones)
Helps you keep up with everyday bills and living costs
Great for anyone who relies on their monthly income, especially families or homeowners with regular expenses
Think of it as your financial safety net, keeping things ticking over while you focus on getting better.
What is Critical Illness Cover?
Critical Illness Cover pays out a tax-free lump sum if you’re diagnosed with one of the serious illnesses listed in your policy, typically things like cancer, heart attack, or stroke.
It’s not based on your ability to work, it’s triggered by the diagnosis itself.
Provides a lump sum you can use however you need
Helps with things like mortgage repayments, home adaptations, or treatment costs
Often added alongside life insurance for extra peace of mind
It’s designed for those big “what if” moments, when life takes an unexpected turn and you need financial breathing room.
So, which one is right for you?
Here’s a simple way to look at it:
Income Protection covers your paycheque — it helps you maintain your monthly income if you can’t work.
Critical Illness Cover covers your diagnosis — it gives you a lump sum to manage life-changing health events.
Many people choose to have both, because they work together: one helps you manage ongoing costs, the other helps you recover financially from a major health shock.
A quick example
Let’s say you’re a first-time buyer with a mortgage and a young family.
If you broke your leg and couldn’t work for six months, Income Protection could step in to keep your bills paid.
If you were diagnosed with something more serious, like cancer, Critical Illness Cover could give you a lump sum to pay off part of your mortgage or fund time off work to recover.
Both policies protect your lifestyle, just in different ways.
Making it simple
We know insurance can be confusing. That’s why our approach is straightforward: we’ll listen first, understand your needs, and help you find the right cover, not just the cheapest.
Whether you’re a family planning for the future or a first-time buyer taking your first big step, it’s about one thing: protecting your future so you can focus on living today.
Ready to chat about what’s right for you?
If you’d like to talk through your options, get in touch for a friendly, no-obligation chat.We’ll help you understand the differences and find cover that genuinely fits your life.
The information in this article is for guidance only and should not be taken as financial advice. Policies vary between providers, and the right choice will depend on your individual circumstances. Always speak with a qualified adviser before taking out any form of protection insurance.
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