Protect your home and your income with critical illness insurance.

There are a number of insurance options available for mortgage protection. One of those being critical illness insurance. 

Not only does it offer a financial safety net if you become ill or disabled, but it can also help protect your income and assets. But do you really need critical illness insurance to cover a mortgage?

What is Critical Illness Insurance?

Often added to a life insurance policy, critical illness cover pays out a lump sum upon diagnosis of a serious medical condition, illness or injury. The money can be spent however you choose, from helping you pay off your mortgage or with living costs or savings.

You could also opt to purchase life insurance as a standalone product, but as this is rarer, you can only do so over the phone with one of our advisers. If you are interested in standalone critical illness cover, please call us on

01392 436193 (Mon – Fri 9am – 5.30pm)

Get the right package for you

Why do I need to cover my mortgage?

If your income pays some or even all of the mortgage repayments, then it’s definitely worth considering adding critical illness cover. This way, your family and/or loved ones won’t be tasked with making repayments or potentially losing their home.

Additionally, if you are a homemaker, then you may also want to consider critical illness cover to aid with any household costs if you became severely ill or disabled.

Benefits of a Critical Illness policy

Critical illness cover can be a great way to help ensure financial security for the unexpected. Benefits can include:

  • Peace of Mind: In the event of a critical illness, your plan will help protect you and your loved ones from financial hardship, by having access to funds following a successful claim. This peace of mind allows you to focus on your recovery.
     
  • Financial Protection: the policy can provide financial protection for your family and/or loved ones. It can help cover private healthcare costs, or provide income replacement should you be unable to work due to illness.
     
  • Flexibility: Policies can be tailored to meet your needs and budget. You can choose the amount of cover you need, and the amount of time you wish to be covered for.
     
  • Home remodels: If you unfortunately become temporarily or permanently disabled, the funds from the critical illness plan could help pay for home remodels to make your home more accessible.

Conditions covered by Critical Illness policies

Illnesses covered by the policy will vary depending on the insurer's plan. Common conditions include:

  • Heart Attack
  • Stroke
  • Certain types and stages of cancer
  • Major organ transplantation
  • Kidney failure
  • Liver disease
  • Multiple Sclerosis (MS)
  • Parkinson’s disease
  • Alzheimer’s disease
  • Traumatic head injury
  • Loss of limb/sight
  • Permanent disabilities due to injury or illness.

Note that the list of conditions covered may differ depending on the insurer and policy type, but all critical illness plans must adhere to the minimum standards set by the ABI.

Talk to a Critical Illness expert today...

Factors to consider when choosing a Policy

There are several factors to consider before purchasing cover, such as:

Medical History

Consider your medical history and any pre-existing medical conditions. Note that policies only cover conditions diagnosed after the policy has been taken out.

Make sure you are honest, disclosing any pre-existing conditions. Your insurer may check your medical history when you apply for cover, and if you later make a claim. If they find that you have failed to disclose an existing condition, any claim made could be denied.

Policy term

Some policies, like whole life insurance, offer lifelong cover. While term life insurance provides cover for a limited time. Ideally, you'll need a policy term that matches your mortgage term.

One option is decreasing term life insurance (also known as mortgage life insurance). This type of policy has the same cover amount as a regular term policy, but decreases over time. It’s typically used to protect a repayment mortgage, as it can be tailored to the length and size of the loan.

Interested in speaking to an adviser?

You could choose to add critical illness cover onto your mortgage life insurance, or take out cover separately. If you are unsure of the best option for you, then our friendly and knowledgeable advisers are on hand. Simply call us on 

01392 436193 (Monday - Friday 9am - 5.30pm)

Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.

If you are facing financial difficulty, please contact your insurer before cancelling your policy or letting it lapse. They may have options available that means you don't have to lose the plan.

Amount of cover

Critical illness cover is often purchased as an addition to life insurance, with the amount of cover varying depending on your needs and budget. Consider any costs your family and/or loved ones would need support with if you're unable to help, such as:

  • Mortgage payments
  • Debts
  • Household bills
  • Essential living costs
  • Childcare costs
  • Potential costs of treatment and rehabilitation

By calculating the amount of cover needed, you can make sure your family and/or loved ones have enough funds should the worst happen.

Premiums

Premiums for critical illness cover will depend on the type of policy and the amount of cover. Other factors can affect the cost of your policy, such as your age, health, and lifestyle if you smoke. Due to the health risks associated with smoking, it can have a significant impact on the cost of premiums.

 

Purchasing critical illness insurance through Cavendish Online

 

Online

You can choose to include critical illness cover along with your life cover. This option is available to anyone without any health disclosures. This is as long as the amount of critical illness cover is the same as the amount of life cover.

To add critical illness cover online, you can select it as a "policy extra" after receiving a quote. It's important to note that there are a limited number of critical illness policies and providers available online. For a wider selection of insurers and products, you can explore our guidance and advised phone-based services.

Over the phone with guidance

If you prefer to go through the insurance process over the phone, our advisers are here to help. They can provide you with quick quotes and walk you through the application process once you have chosen the right policy.

Unlike our online option, you have the flexibility to choose different amounts of critical illness and life cover when you quote through our Guidance team. It is ultimately up to you to decide the levels of cover you want to secure.

Over the phone with advice

If you have any medical conditions to disclose, work in a high-risk occupation, participate in dangerous hobbies, or are unsure about which policy is best for you, we recommend contacting our advice team.

Our team will take the time to understand your situation during a 15 to 20-minute phone call (or longer if needed). They will then research the market and provide personalised recommendations based on your specific needs.

If you are considering applying for critical illness cover or if you are unsure about your options, it is recommended to speak to an adviser. They can provide guidance on whether you may need life cover or critical illness cover. Also, they’ll consider your personal circumstances and the amount of cover you may need.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance, Critical Illness Insurance and Income Protection.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 


01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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