What is Critical Illness Insurance?
Critical illness cover, or mortgage critical illness insurance, is a long-term insurance policy which covers you in the event of you being diagnosed from a critical illness.
Critical illnesses can occur suddenly, at any time and to anyone. If you are unfortunate enough to develop a critical illness, having cover in place could help to minimise the financial damage that it can cause to you and your loved ones.
The illnesses covered will be listed within your specific policy and if you develop one of the illnesses covered, you will receive a tax-free one-off payment to help you with your mortgage, rent, debts or making alterations to your home, such as installing wheelchair access.
This type of insurance policy will help you if you get one of the specified conditions listed within your policy agreement, but beware that not all conditions will be included. Critical illness cover is not the same as life insurance, though you may be able to purchase them together.
Mortgage critical illness cover can provide peace of mind at a time when you need it most, and it can be well worth purchasing whether you’re upsizing, downsizing or even buying your first home. If you’re in need of mortgage critical illness insurance or you want to get a quote to see what the cost would be for you and your family, it’s worth speaking to a broker who can assess your situation and help you make the right decision.
Types of Critical Illness Cover
There are two main types of critical illness cover:
- Additional Cover Policies – This type of policy is often bought with level term or decreasing term life insurance, and it could pay out if you’re diagnosed with a critical illness and then later pass away.
- Combined Cover Policies – This type of policy is bought with life insurance, but it only pays out once. Insurers offering combined cover policies will pay 100% of your chosen cover amount when you’re diagnosed with a critical illness or when you die, but not both.
A good policy should cover you for a large range of conditions and it may not necessarily be the cheapest plan available. It’s worth shopping around for the right deal for you, rather than just choosing the most budget-friendly option, as this could cost you later on.
Some of the illnesses that might be covered include:
- certain types or stages of cancer,
- multiple sclerosis,
- heart attacks,
- permanent disabilities as a result of injury
- The policy will come to an end once the payment has been made by the insurer, Note that some insurers will offer smaller payments for less severe conditions.
If you’re unsure which type of insurance policy provides the best protection for you and your loved ones, you may want to speak to a member of our team who can assess your needs, budget and lifestyle to help you make the right decision.