Life Insurance (Term) vs Critical Illness Cover
A plain-English comparison of two GeraSure policy lines — what each covers, what it excludes, typical annual premium, and how to choose.
Quick Answer
Life Insurance (Term) typically costs £80–£600/yr and Critical Illness Cover typically costs £200–£1200/yr. Life Insurance (Term) has the lower entry premium, but the right choice depends on what you need to protect — read the coverage below.
Life Insurance (Term)
Term life insurance pays a lump sum if the policyholder dies within the specified term. Provides financial protection for dependants — mortgage repayment, income replacement, or family security.
- Avg annual premium
- £80–£600/yr
- Type
- personal
- Available in
- 3 markets
Critical Illness Cover
Pays a tax-free lump sum if you are diagnosed with a specified critical illness — typically cancer, heart attack, or stroke. Provides financial cushion during recovery.
- Avg annual premium
- £200–£1200/yr
- Type
- personal
- Available in
- 2 markets
What each policy covers
Life Insurance (Term) covers
- ✓ Lump sum death benefit
- ✓ Terminal illness benefit (typically included)
- ✓ Option: decreasing term (mortgage protection)
- ✓ Option: level term (income protection)
Key exclusions
- ✕ Suicide within first 12–24 months (check policy)
- ✕ Pre-existing undisclosed medical conditions
- ✕ Deaths related to illegal activities
Critical Illness Cover covers
- ✓ Cancer (most types)
- ✓ Heart attack
- ✓ Stroke
- ✓ Multiple sclerosis
- ✓ Organ failure and transplant
- ✓ 50+ critical conditions depending on policy
Key exclusions
- ✕ Conditions not on the specified list
- ✕ Pre-existing conditions
- ✕ Non-invasive cancers (check exact terms)
- ✕ Survival period requirement (typically 14 days post-diagnosis)
Where each is available
Life Insurance (Term) is also offered in Armenia where Critical Illness Cover is not.
Frequently asked questions
Is life insurance (term) more expensive than critical illness cover?
Based on GeraSure's average annual premium ranges, life insurance (term) typically costs £80–£600/yr and critical illness cover typically costs £200–£1200/yr. Life Insurance (Term) usually has the lower starting premium. Your actual quote depends on your risk profile, location and cover level.
How much life insurance do I need?
A common rule of thumb is 10x your annual income for income replacement. For mortgage protection, match your outstanding mortgage balance. Use GeraSure's life insurance calculator for a personalised recommendation.
Is critical illness cover the same as life insurance?
No — critical illness cover pays out on diagnosis of a specified serious illness while you are still alive. Life insurance pays out on death. Both are complementary — critical illness provides funds for living costs and adaptations during recovery.
GeraSure is a comparison and referral service. Insurance products are provided by FCA-authorised or equivalent regulated insurers in each jurisdiction. GeraSure does not underwrite insurance policies and does not provide financial advice. Always read the policy wording before purchasing.