Decreasing Critical Illness Cover

The Complete Guide to Decreasing Critical Illness Cover

Do you have critical illness cover? If not, then this article is for you. In this article, we will discuss the importance of decreasing your level of cover and how it can actually be a good thing.

Decreasing Critical Illness Cover: What You Need to Know

Think about this for a moment,

The insurance industry is a complex and competitive one. With so many companies to choose from, it can be difficult to find the right policy for you and your family. One common option that has been available in the past is Decreasing Critical Illness Cover (DCC).

This type of cover offers an insured person a lump sum payment if they contract any illness listed as critical on their policy terms and conditions. However, recent changes have seen this form of cover disappear from most policies offered by insurers today, which can leave some people feeling unsure about what steps to take next.

Reasons to Decrease Your Critical Illness Cover

There are many reasons why decreasing your critical illness cover can be a wise financial decision. For example, you may have found that the premium for this type of policy is too high in comparison to its actual value or use for you and your family.

You might also find yourself regularly making claims on it which would see your premiums increase in future years – reducing the overall savings potential over time.

Decreasing Critical Illness to Protect Your Mortgage

One of the most common reasons to decrease your critical illness cover is if you are using it as an income replacement product.

You see:

This can be particularly useful for people who have a mortgage or other type of loan that needs to be paid off over time – such as credit card debt, personal loans, and car finance.

If you own a house with a large amount of equity tied up in it, then DCC could provide some relief should you need extended periods away from work due to medical issues.

If this happens, then part of the payment received under your policy will go towards paying down your mortgage so that interest doesn’t accumulate while you’re unable to earn money elsewhere.

It’s important though not to rely on this form of cover alone unless there are no other options available to you.

Decreasing Critical Illness as Part of Your Health Protection Plan

Another reason to decrease your critical illness cover is if you are part of a health protection plan1.

These types of policies will typically provide comprehensive coverage for all members that include preventive healthcare advice and discounts on prescription drugs, dental treatments, eye exams, vision products, therapy sessions, etc.


By keeping up with regular check-ups and screenings (most plans include these at no additional cost), it’s possible to reduce the risk of certain illnesses occurring in future years – which could mean you don’t need as much insurance or none at all!

In fact, some people choose not to have any type of life insurance at all simply because they can afford treatment out-of-pocket should anything happen.

Other Factors That Can Help You Decide If This Is Right for You


This is a major factor that can help you decide if decreasing your critical illness cover will be beneficial. For example, some people find themselves paying premiums for DCC with no real benefit because they haven’t made any claims under it in years – which means the cost of their policies outweighs the value of what’s being protected.

Family Situation

Another important consideration is your family situation. If you have young children at home, then it would probably be wise to keep some critical illness cover in place until they are all grown up and able to support themselves financially.

Affect Your Family Inheritance

This can help ensure that any future debts (such as school fees) will still be repaid should the unthinkable happen during their studies or early career.

The Type of Mortgage or Debt the Insurance Should Cover

This is an important factor to consider when deciding how much critical illness cover you will need. For example, if your mortgage or other types of a loan includes a percentage that is interest-only, then this could be dangerous in the future should something happen where you are unable to make repayments on time.


If the full amount isn’t due each month, then it’s possible that the lender could seize your assets and sell them to recover what is owed – leaving you with nothing.

Family Needs

Another important element to consider when working out how much critical illness cover you will need is the type of lifestyle that your family currently enjoys. If they are used to being able to take regular holidays, drive new cars, eat in expensive restaurants, etc., then it would be wise not to remove all DCC coverage – even if no claims have been made.

But wait, let me tell you something

The amount of money you receive from your insurer may not be enough for them to continue living the same lifestyle they are used to, and this could cause stress and financial hardship in many cases.

It’s important that everyone knows what will happen should something like a critical illness cover claim suddenly appear – so make sure all family members understand their rights

Pros and Cons of the Decreasing Policy

As with any type of insurance, there are always pros and cons to consider.

Let’s take a closer look,


  • If you aren’t making regular claims, then the cost of DCC is likely to be less than if it were a standard policy.
  • It can provide peace of mind knowing that should something happen and prevent you from working for an extended period, all your bills will still get paid.


  • The premiums are much higher than traditional life insurance policies because this type covers multiple risks (critical illness vs one risk such as death).
  • People who don’t make many claims may find themselves paying more in monthly premiums than their claim would actually payout over time – which means they might want to consider keeping some coverage but decreasing how much they have to depend on personal circumstances.

Decreasing Critical Illness Cover Requirements

If you do feel like Decreasing Critical Illness Cover could work well with both your current circumstances but long-term goals then there are certain requirements that need to be met before speaking with an insurance advisor2 about switching policies:

  • Your age must be between 18 and 45 when applying for DCC.
  • You cannot currently hold critical illness cover  
  • You must have had health insurance for at least 12 months
  • The insurer you are currently under cannot offer DCC.

Common Questions

Which Decreasing Critical Illness Cover Policy Is Right For Me?

What is the Benefit of Decreasing Critical Illness Cover?

In conclusion

In a nutshell,

Decreasing Critical Illness Cover is a great way of ensuring that your insurance premiums remain low, while also providing some peace of mind knowing you will be able to cover any future claims should they arise

However, if you aren’t making regular claims and your circumstances change then the premium may be more than what it would cost to keep a standard policy. It’s important to consider this before applying for DCC as there are certain requirements that need to be met first.

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