The cost of critical illness cover is based on the level of risk you pose to the provider.

Therefore, for those who are older, smoke or have a less than favourable medical history, the cost of premiums will be higher.

For this reason, it is essential to compare critical illness quotes to help you find a good deal.

Taking out joint life insurance with critical illness cover allows you to cover two people simultaneously, whilst saving money each month.

Taking out joint cover is cheaper than paying for two individual policies, however, it does expire after a claim has been made.

This means that if one partner falls ill or passes away, and a claim is made on the policy, a pay out will be made. However, the remaining partner will then be left with no cover.

This could result in them having to obtain a new policy when older. As a result of the increased risk they now pose, they are likely to have to pay inflated premiums.

Depending on the family history of both partners, detrimental health on one side could result in inflation of premiums, resulting in the other partner paying over the odds.

In some instances, certain illnesses will be excluded from a critical illness policy if that condition has been present in the past.

Due to various reasons, if both partners require life insurance with critical illness cover and your budget allows, it is likely to be more beneficial to take out two individual policies.

Critical illness cover taken out with term-based life insurance provides you with protection for a specified period of time.

This term is determined during the application process and is affected by your requirements for protection.

Generally speaking, the longer you require cover, the more you will pay, as the chances of you making a claim during the policy term increase.

When taking out life insurance with critical illness cover you should consider the remaining length of your mortgage and how long others are likely to be dependent on you.

The answers to these questions will help you to determine how long you require your life insurance with critical illness cover.

Ultimately, most critical illness insurers have an upper age limit to which they will provide cover; usually between 70-84 years old. Therefore, you'll not be able to secure a term which runs past the upper age limit for the provider, as at this point the cover must cease. However, your life insurance can last longer depending on the term you choose.

Critical illness cover provides a cash lump sum pay out for a serious, life-changing illness, which is not terminal.

The illnesses specified can differ between insurers, therefore it is essential you are aware of exactly what conditions your policy provides cover.

Occasionally, critical illness will provide exclusions if you have disclosed certain medical conditions during the application.

For example, a specific type of cancer may be excluded if there is a family history of its presence, meaning that if you are diagnosed with this condition, a pay out will not be made for this.

Critical illness and income protection insurance are often confused, as they both serve the purpose of paying out if you are unable to work.

However, the two are not the same.

Critical illness pays out a one-off tax-free payment if you are diagnosed with a life-threatening illness and unable to work.

Whereas, income protection insurance provides regular payments, equivalent to a percentage of your salary, to help with the loss of income whilst you are out of work.

Income protection tends to pay out for a wider range of causes, including critical illness, minor illness, accidents and stress.

Critical illness, on the other hand, only pays out on a life-changing illness but does not require you to be off work in order to make a claim.

Typically income protection insurance is significantly more expensive than critical illness, is a far more complicated product and cover can differ dramatically between insurers.

As with life insurance, it is unlikely to be beneficial to take out critical illness cover specifically for your children.

If they were diagnosed with a serious illness, it is unlikely to result in any loss of income, (unless you were to take time off to care with them).

With the large majority of adult critical illness policies, your children can also receive a certain level of cover. Some providers include child cover at no additional cost, whilst others charge for this as an optional benefit.

If your child is diagnosed with a critical illness, you can make a claim on your policy.

The amount you receive will often be capped, (usually up to either £50,000 or 50% of the overall policy total) - although this will vary between insurers.

This money can be used to replace a lost income whilst you take time off work or to pay for any necessary home adaptations.

Making a claim if your child is diagnosed with a critical illness in some instances reduces the overall pay out.

Cover for your children on your critical illness will usually remain in place until they reach the age of 18 or 21.

One of the key uses of critical illness cover is to ensure you are still able to repay your mortgage if you were to fall seriously ill.

The pay out sum is often set to help cover the outstanding balance of a mortgage.

If you are no longer able to work, you can make a claim and use the funds to help clear the mortgage, allowing your family to remain in the family home.

Without such cover, you may struggle to meet the repayments, resulting in either possible repossession or relocation.

This would obviously cause you and your family significant additional stress, at an already very difficult time.

Like life insurance, the cost of your critical illness premiums are calculated based on the likelihood of a claim.

Due to the health issues associated with smoking, those who smoke are likely to pay significantly higher premiums.

To ensure you do not pay over the odds, it is best to compare multiple quotes to find the most cost-effective deal.

Most insurers class you as a smoker if you have smoked tobacco or used any nicotine replacement products within the past 12 months (and for some insurers this may be longer).

As a result, it is likely you will still experience an inflated premium when taking out critical illness within this period.

It is a common misconception that the terms critical illness and terminal illness are interchangeable.

This is not the case.

Terminal illness cover tends to be included as standard with term life insurance.

It provides the option to make an early claim if you are diagnosed with an illness and given less than 12 months to live.

Critical illness cover, on the other hand, comes at an additional cost, (either with your life insurance or as a standalone policy).

It provides you with a tax-free lump sum pay out if you are diagnosed with a serious, yet not life-threatening, illness.