Critical Illness Mortgage Cover

Critical illness is designed to support you and your family if you are diagnosed with a life changing critical illness.

It is a type of insurance policy that provides a lump-sum payment if you are diagnosed with a specified critical illness or medical condition. The purpose of this coverage is to offer financial support during a difficult time when you’re dealing with a serious illness.

There are many providers offering critical illness cover, and the right policy for you will depend on your needs and current circumstances. Of course, when looking for any protection policy, it’s always worthwhile shopping around and doing your research to ensure you get the best possible deal, as well as the right level of cover.

Illnesses covered vary widely depending on your critical illness policy provider, but a number of core conditions are traditionally covered by all:

• Cancer
• Heart attack
• Kidney failure
• Coronary artery bypass
• Stroke
• Multiple sclerosis
• Major organ transport
• Loss of arms or legs and major disabilities
• Diseases such as multiple sclerosis or Parkinson’s disease

All policies cover numerous life-changing illnesses and conditions but make sure you check your policy as not every type of illness is covered.

Critical illness policies usually carry a number of specific conditions that would render a claim invalid, so always check the exclusions to ensure you’re adequately covered. These exclusions could include pre-existing medical conditions, minor heart attacks or early cancer diagnoses.

In contrast to income protection insurance that provides you with a regular payout to replace your lost income, critical illness cover gives you a lump sum, tax-free payment that you can use to pay your mortgage, your living expenses and, if required, your treatment.

• If you don’t receive any benefits that would cover you for long-term sickness from your employer.
• If you don’t have enough savings to pay for your care or your living expenses if you become ill and can’t work.
• Depending on your financial circumstances, you may be able to claim statement benefits of around £100 per week- if that isn’t enough the cover will help.
• If you’re single and don’t have any dependents, the critical illness will give you a one-off payment as opposed to a payment they’ll need in lieu of your income.

The cost of premiums for a critical illness policy will vary according to your age and health, i.e. the level of risk you represent to your insurer, so it’s important that you talk to an independent financial adviser who’ll have access to multiple products from trusted insurers across the entire market.