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Income protection or critical illness cover: which do you need?

Being unable to work and being diagnosed with something serious are different problems. Cover for one of them does nothing about the other.

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The short answer

Income protection pays a monthly income while illness or injury stops you working. Critical illness cover pays a single lump sum on diagnosis of a listed condition. If you can only have one, income protection usually does more. Statutory Sick Pay is at most £123.25 a week (or 80% of normal earnings if lower) for up to 28 weeks.

£123.25Statutory Sick Pay a week
28 weeksHow long it lasts
50% to 65%Typical income protection benefit
£0Fee to you. The insurer pays us
What is on this page
  1. They solve different problems
  2. What you actually fall back on
  3. Income protection, in detail
  4. Critical illness cover, in detail
  5. How to choose between them
  6. Having both, affordably
  7. How we handle this

They solve different problems

Income protection Critical illness cover
Pays A monthly income A single lump sum
Triggered by Being unable to work through illness or injury Being diagnosed with a listed condition
Duration Until you return to work, the term ends, or you retire One payment, then the policy ends
Covers stress or a bad back? Usually yes if it stops you working No, unless it is a listed condition
Covers a condition you recover from quickly? Only past the waiting period Yes, if it meets the definition
Typical cost Higher Lower for the same headline figure

They are not alternatives so much as answers to different questions.

Income protection asks what happens if you cannot work. Critical illness cover asks what happens if something serious is diagnosed.

What you actually fall back on

Statutory Sick Pay is at most £123.25 a week for up to 28 weeks in 2026/27. That is it, unless your employer offers more.

A household with £2,400 of monthly outgoings drops to roughly £534 a month on Statutory Sick Pay. The gap is nearly £1,900 a month, and it opens in week one.

Check your employment contract. Occupational sick pay of six months full pay followed by six months half pay changes the answer completely. So does having none, which is the position for every self-employed person.

Income protection, in detail

  • Pays a monthly benefit, usually 50% to 60% of gross earnings
  • The benefit is normally tax free
  • A waiting period, often 4, 13, 26 or 52 weeks, before it starts
  • Longer waiting periods cost much less, so match it to your sick pay
  • Own occupation cover pays if you cannot do your job, which is the definition to want
  • It can pay repeatedly across the term, not just once

The waiting period is the biggest lever on price. Our waiting period article explains how to set it against your employer sick pay.

Critical illness cover, in detail

Critical illness pays a lump sum on diagnosis of a listed condition that meets the policy definition. Cancer, heart attack and stroke make up most claims.

Definitions matter more than the list length. A policy covering 60 conditions with strict definitions can be worse than one covering 40 with fair ones.

It also usually covers children at no extra cost, which is the part parents rarely know about and the reason some families buy it.

Our conditions article covers what does and does not qualify.

Do you know what your employer sick pay actually is?

Send us the contract wording. That single detail usually decides which cover you need and what it should cost.

Ask us a question

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

We advise on and arrange life cover, critical illness cover and income protection ourselves. There is no fee to you for our advice. If you take out a policy, the insurer may pay us a commission.

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How to choose between them

If you can only afford one, usually income protectionIt covers far more causes of lost income, and lost income is the thing that actually breaks a household budget.
Critical illness if the debt is the worryA lump sum clears a mortgage outright. That changes the family's options in a way a monthly income does not.
Self-employed, income protection firstNo sick pay, no occupational scheme and no notice period. The gap is immediate.
Generous employer sick pay changes the orderTwelve months of employer cover means a long waiting period on income protection, which makes it cheap, and leaves room for critical illness too.

Having both, affordably

Most households can have both if the design is right. The usual approach is a long waiting period on income protection and a modest critical illness sum matched to the mortgage.

Design choice Effect on cost
Waiting period 4 weeks to 26 weeks A large reduction
Benefit 65% to 50% of earnings A moderate reduction
Term to 60 rather than 68 A moderate reduction
Critical illness as decreasing rather than level A large reduction
Stopping smoking for 12 months Often a large reduction

Design levers, not a quote. The right combination depends on your sick pay, your debts and your health.

How we handle this

Income protection and critical illness cover are both things we advise on and arrange ourselves. There is no fee to you for our advice. If you take out a policy, the insurer may pay us a commission.

The work that matters is matching the waiting period to your actual sick pay, reading the definitions rather than the condition count, and full disclosure so the claim pays.

Who this suits, and who it does not

Income protection first if
  • You are self-employed with no sick pay at all
  • Your employer pays statutory sick pay only
  • Your household could not absorb three months of lost income
  • Your work is physical and an injury would stop it
Critical illness first if
  • Clearing the mortgage outright is the main worry
  • Your employer sick pay is generous and long
  • You want children's cover included
  • You have savings that would cover several months

Check broadband before you make an offer

Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.

Check broadband at an address (Ofcom)

Want all your bills in one?

We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.

We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.

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Questions people actually ask

Should I get income protection or critical illness cover?
If you can only have one, income protection usually does more, because it covers any illness or injury that stops you working. Critical illness is stronger where clearing the mortgage outright is the priority.
How much sick pay would I actually get?
Statutory Sick Pay is at most £123.25 a week for up to 28 weeks in 2026/27. Your contract may provide more. Self-employed people get neither.
What is a waiting period?
The time you must be off work before income protection starts paying. Common options are 4, 13, 26 and 52 weeks. Matching it to the end of your employer sick pay keeps the cost down.
Does critical illness cover stress or back problems?
Generally no, unless they meet a listed condition definition. Income protection does cover them if they stop you working, which is a large practical difference.
Does the number of conditions covered matter?
Less than the definitions do. A policy listing 60 conditions with strict wording can pay less often than one listing 40 with fair wording.
Is income protection taxed?
Personal policies you pay for yourself normally pay out tax free. Employer-arranged schemes are usually taxed as income, so check which you have.
Are children covered by critical illness policies?
Most include children's critical illness cover at no extra premium, up to a capped amount. Terms differ between insurers, so check the definitions.
Can I get cover with an existing health condition?
Often yes, sometimes with an exclusion or a higher premium. Disclosing it fully is what makes the policy reliable at claim.
How do I check broadband speed at a property?
Use Ofcom's free broadband and mobile checker at checker.ofcom.org.uk. Enter the property's postcode and choose the address to see which broadband speeds and mobile coverage are available before you make an offer.

Where to go next

Income protectionThe cover itself.Critical illness coverThe cover itself.Waiting periodsThe biggest lever on price.What is covered?Definitions over lists.How much life cover?The other half of the plan.Emergency savingsWhat covers the waiting period.
Where these figures come from

Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.

Life cover, critical illness cover and income protection are advised on and arranged by us directly.

Last reviewed September 2026.

Find out what the gap really looks like

Both of these are covers we advise on and arrange ourselves. We will start with your sick pay, not with a product.

Start a conversation

Prefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.

We advise on and arrange life cover, critical illness cover and income protection ourselves. There is no fee to you for our advice. If you take out a policy, the insurer may pay us a commission.

Which one your risk actually needs

Cover with a health conditionDiabetes, cancer, mental health, blood pressure. Start here.What people actually claim forCancer dominates one product. Bad backs dominate the other.Income protection and a bad backThe most claimed for problem, and no CI policy covers it.Why critical illness claims failThe definition, not the insurer. What to check first.Self employed and off sickNo Statutory Sick Pay at all. What that actually means.Cover and mental healthLife cover is fine. Income protection is where exclusions appear.