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What is Critical Illness Cover ?
A critical illness policy pays out a tax-free lump sum if you’re diagnosed with a critical illness condition.
This type of policy covers you for illnesses such as heart attack, cancer, stroke, multiple sclerosis, and many others, some of which are the most diagnosed medical conditions.
The list of conditions covered can vary with each insurer which is why we aim to choose ones with the most comprehensive list and definitions.
Most insurers also include critical illness cover for children which you can add for a small cost to your cover.
What is Serious Illness Cover ?
This differs from critical illness as it the insurer will pay a lump sum based on the severity of the condition based on the insurer’s definition.
Do I need Critical Illness Cover?
Being diagnosed with an illness can have a long-term impact on your health, family and finances. During this time, the last thing you want to worry about is how you’re going to keep up with mortgage payments and bills if you were unable to work whilst you are being treated and recovering. It can also cover you if you had to take time off work to look after your child suffers from a long term illness.
This type of policy can be useful for everyone because good health is never guaranteed throughout life, and with long term illnesses such as cancer on the rise, a lump sum pay-out can:
Partially or full pay off your mortgage or any debts
Help cover the costs of living during your treatment and recovery
Provide financial support in the event of a child being diagnosed with an illness
Contribute towards or cover the costs of any private treatment
How much does it cost ?
The cost of critical Illness cover depends on the following factors:
Your age at enquiry
Your smoker status
Amount of cover you are looking for
Type of cover
Term of cover
Our advisers will recommend the best product on the whole of market (we use all the lenders) for you based on your individual needs and circumstances.
Do I need to put my policy into Trust?
Similar to a Will, a Trust is a legal document issued by the insurer which ensures that in the event of your terminal illness or death within the policy, the proceeds are paid to your trustees to distribute accordingly to your beneficiaries.
This falls outside of your estate and can help mitigate inheritance tax liabilities, as well as going into probate. This only applies if you have a life cover policy, or a life with critical illness policy.
Maya was a single mother raising two children who were in high school. She was a teacher by profession. She had a repayment mortgage of £120,000 and credit card loans totalling £5,000. She was diagnosed with breast cancer at the age of 43 and had to take time off work for treatment, in total for 1 year.
During this time, she had made a critical illness claim on her policy of £200,000. She used this to pay off her mortgage and credit card loans entirely and used the surplus to cover the cost of living whilst she was in treatment and recovery to focus on her health and wellbeing.
Real Life Example
Things to Consider
Critical illness cover can be taken out with life cover. The benefit of this is that it will either pay on terminal illness, death, or on critical illness depending on what is claimed on first during the policy term.
Each insurer has its own set of “critical illness definitions”. This is a guideline for what they will consider paying out on a claim. We will use the latest tools to ensure we recommend the most comprehensive cover with the best definitions.
Most insurers will have options which you can include on your plan such as children’s critical illness for a small additional premium. This will provide a lump sum on the diagnosis of a children’s critical illness meeting the insurers definitions.
How it Works
HOW IT WORKS
A chance to meet the team to discuss your financial needs and goals
We carry out full market analysis to get you the best terms available
We will present the most suitable course of action to meet your objectives
We apply for your covers to ensure you are fully protected
We regularly review your cover to ensure it is still competitive
Why Re-mortgage my house?When you agree to a mortgage deal, you get an initial rate or introductory rate. However, this initial rate will come to an end – whether that’s in 2, 5,10 years’ time, when that happens, you’ll move on to your lenders Standard Variable Rate (SVR). Re-mortgaging will allow you get the best rates again.
Can I get a mortgage?This will depend on your individual circumstances and finances. We will work with you to find the best rates and offers to help meet your mortgage objectives and goals.
How much deposit do I need?There are now some lenders offering 5% mortgages, however there will be some criteria to be met. Once we know your circumstances and what type of mortgage you require, we can let you know the amount of deposit you will require.
Can I get a mortgage as self-employed or as a contractor?In a short answer, yes. It will depend on how you are operating (sole trader, limited company, contractor) and some lenders may require 2 to 3 years’ of accounts. We will guide you through the whole process and look at your personal situation to find the right lender for you.
Why Use Us?
We provide free bespoke non-obligation quotes
Whole of Market
We use all the providers in the market
We give independent and unbiased advice
We put your policy in trust
Speak to one of our Critical Illness Cover specialists
Leave your details below and one of our advisers will be in touch to discuss your critical illness policy requirements.
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