Critical Illness Insurance
How would you be able to pay your bills and keep up with your lifestyle if you had to stop working due to a critical illness? Would you be able to keep up the repayments on the mortgage and other everyday commitments without your income? If the answer is no, then you need to be looking into critical illness cover.
What can I use the critical illness insurance proceeds for?
Critical Illness insurance proceeds can be used in whatever way that suits you best. Whether that is paying your monthly bills, paying off your mortgage, making alterations to your house or using it to live life to the full. The options are endless, but it is up to you what you do with the money.
Different providers will pay out for variety of illnesses, however there are most commonly two levels of cover; core and enhanced. Core cover will usually only pay out for the big three illnesses, these are heart attacks, strokes, and cancer. Enhanced cover will often offer protection for a wider range of illnesses, include MND, MS, and other neuropathic disorders, as well as many others. The diagnosis doesn’t have to be terminal. We have had many clients claim on this policy who are still with us several years later.
Extra CIC benefits
- Fracture Cover – An add on which will pay out a fixed sum for breaking certain bones. This usually adds a small figure onto the premium.
- GP Service – Some providers have a service you can use to get second medical opinions, nutritional tips, counselling and legal guidance.
Will the monthly payments change?
Depending on the policy type, you can choose whether you have guaranteed premiums or reviewable premiums. Guaranteed premiums will stay at the same amount throughout the term of your policy but do cost a little bit more upfront. The reviewable policies are great for keeping upfront costs to a minimum but can get quite expensive as you get older or if you develop health conditions, so we would almost always recommend a policy with guaranteed premiums.
Do I need it to cover the whole of my outstanding mortgage amount?
Like all insurance policies, it’s always best to be covered completely, however sometimes our budget prevents us from making that possible. We will therefore review your budget to see your disposable income and use this to enable us to recommend a level of critical illness that you can afford.
Looking for something else?
First Time Buyer Mortgage
This is a big and exciting step for anyone going down the house purchasing route for the first time. This is likely to be one of the biggest financial commitments that you are likely to make and it has to be right for you.
Help to Buy
The Government has introduced “incentive schemes” such as the Help to Buy Equity loan, which is only applicable for new build properties. This is available for first-time buyers and movers.
It is vital that you protect that investment you will be working hard to maintain in the years ahead. As no one can predict the future, we would recommend that you consider protection that will help secure your investment.