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Critical Illness Cover In Essex
Taking out a mortgage? You may not always need a critical illness cover policy, but it is certainly advisable to have one.
What Is Critical Illness Cover?
Put simply, critical illness cover is an insurance policy that pays out if you’re diagnosed with a serious condition listed on the policy. It’s designed to ease the financial pressure and ensure you can pay your mortgage if you’re struck by a serious illness and unable to work. If you’re a first-time buyer, it’s especially important to get covered.
Unlike life insurance, which pays out upon your death, critical illness protection supports you while you’re alive but unable to work due to a serious diagnosis. It helps you and your family stay afloat financially while your focus is elsewhere.
Policies vary, and understanding which conditions and medical issues are covered by providers is an important step when choosing the right policy. The majority of claims (65% according to the Association of British Insurance) are for forms of cancer, but you can expect heart attack, stroke, multiple sclerosis, Parkinson’s disease, motor neuron disease, and organ failure, and more to be covered by big brand insurers.
Obtaining the right critical illness cover is a crucial part of achieving financial security. It can be easy to feel lost amongst the detail and small print, which is why it’s useful to have independent expert advice from a broker. The ideal time to do this is when you’re arranging your mortgage. The two tasks go hand in hand.
Why Critical Illness Cover Matters for Homeowners
Signing up for a mortgage and critical illness insurance simultaneously is the best way we can think of to mitigate the risk of falling behind on mortgage payments due to illness. Nobody wants the worst to happen, but it is essential to plan for the future. How would you cope with a long-term health issue? Imagine spending years in a hospital ward, having your mobility permanently impaired or receiving an early-onset Alzheimer’s diagnosis. Mortgage critical illness cover means keeping a roof over your head.
It’s worth stating that mortgage critical illness cover is a separate product to other forms of life assurance and family protection. Critical illness cover is designed to help you cover your financial responsibilities when you’re still alive. On payment, policyholders commonly use the payout to help pay off a mortgage and other living costs.
What’s Covered by Critical Illness Insurance?
Critical illness insurance cover policies vary, so it’s important to spend time understanding the details of any offer before signing on the dotted line. There is help available even if you already have a medical condition, so it’s always worth asking if critical illness cover for pre-existing conditions is available from your chosen provider.
Most insurers include cover for:
Cancer
Heart Attack
Stroke
Multiple Sclerosis
Major Organ Transplant
Parkinson's Disease
Alzheimer’s disease or dementia (before a certain age)
Blindness or deafness
Permanent disability
However, the marketplace is crowded with countless offers with differing degrees of coverage. It can be difficult to navigate. This is when an experienced, independent broker can prove invaluable. Especially as an off-the-shelf mortgage critical illness cover may not be suitable for everyone.
Life Insurance vs Critical Illness Cover – or Both?
Life cover and critical illness insurance policies may seem similar, and you might be questioning which is most important for you. The answer is that they are both vital for financial security and keeping your home and family secure, no matter what challenges life might throw at you.
The two products differ in their focus. Life assurance pays out on death or, sometimes, a terminal diagnosis. Its purpose is to provide for the loved ones you leave behind. Critical illness cover focuses on replacing lost income while you are undergoing treatment for a significant illness or injury.
Many homeowners purchase joint life cover and critical illness cover products. This gives them complete protection and peace of mind. Should the worst happen, your mortgage is paid, and you will keep a roof over your head.
You might also see critical illness cover referred to as:
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Critical life insurance
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Serious illness protection
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Life and critical illness insurance
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Mortgage illness cover
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Income critical illness cover
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Illness protection or illness cover
Regardless of the name, the goal is the same – financial protection in a medical emergency.
Get a Personalised Quote from a Trusted Advisor
I’m Ian Smith, an independent mortgage and protection adviser based in Essex. With access to the whole of the market, I’ll compare top providers to find the best critical illness insurance quote for your budget and needs. I can quote for combined life insurance and critical illness cover, too. My priority is always finding the right product for your home, family and mortgage.
Frequently Asked Questions
Is critical illness insurance the same as life insurance?
No. Life insurance pays out upon death. Critical illness pays out while you’re alive and suffering from a serious health condition.
Can I get critical illness cover with a pre-existing condition?
Yes, but it is sometimes a more complex process if you have a medical history. It’s advisable to get independent expert advice to get the best offer.
Does critical illness insurance cover cancer?
Most policies cover certain types and stages of cancer, but not all. I can guide you through the definitions and help you choose a plan that suits your concerns.
Can I claim more than once?
Some policies allow multiple claims for different conditions. Others pay out once. We’ll go over this during your consultation.
How long does the cover last?
You can choose a term that suits your needs – for example, until your mortgage ends or your children are financially independent.
Can I get critical illness cover if I’m self-employed?
Yes. In fact, it’s more important to protect your income if you’re your own boss. Talk to me about self-employed options and how you can protect your home and family.
Can I do without critical illness cover?
In theory, you can, but it feels like an unnecessary risk. A critical illness policy helps prevent your home from being at risk if you fall ill and can’t work. Could you cope without it?
Ready to Discuss Your Options?
Click the Book an Appointment tab or call me on 01708 535 946.
Let’s make sure you and your family are protected, no matter what comes your way.