Critical Illness Insurance
Buying a home is a fantastic experience, but being a home owner comes with additional responsibilities. A mortgage is a significant financial commitment over many years, and whilst we hope to remain fit, healthy and employed, from time to time life does throw challenges at us.
What is Critical Illness cover?
Critical illness insurance pays out a lump sum of money upon diagnosis of a serious illness, such as Cancer, MS, Stroke or Heart Attack. Critical illness insurance differs from Life Insurance, because it can pay out whilst you are being treated for your illness. If you go on to make a full recovery, you do not need to repay the money. The lump sum paid is is typically used to repay a mortgage allowing you and your loved ones to remain in the family home and focus on your recovery.
How much does Critical Illness cover cost?
The policy is paid for monthly and so long as you maintain the monthly payments, the policy will remain in force and able to respond to a valid claim. Each insurer offers different levels of cover, so its important to check what illness is covered and what is not.
You will have a defined cover amount (for example £200,000) and this is the amount you and your loved ones will receive in the event of a valid claim. Its often recommended to combine Life Insurance with Critical Illness cover in one policy. To find out more, read our page on Life Insurance
When should I take out a Critical Illness Insurance policy?
Typically people will take out Critical illness insurance when they buy their first home. As well as being your home, your house is also an asset so its worth protecting for your family. The policy is usually arranged to repay your mortgage, so is often arranged over the same time frame as your mortgage (for example 20 or 25 years). One crucial part of taking critical illness insurance is the age at which you start the policy. The younger you are, the cheaper the policy is typically (subject to underwriting and existing health conditions).
How we can help
As an independent and whole of market mortgage and insurance broker, First Select Mortgage Brokers we will carry out a comprehensive search of the mortgage and insurance market to find you the lowest cost product that meets your circumstances. We will conduct an affordability assessment with you to ensure the monthly mortgage payments and insurance payments all fit within your monthly budget.
Have more time? We have published a Free Information Guide on Life & Critical Illness Insurance. It is a short 4 minute read and can be accessed: here
Contact us
About us
First Select Mortgage Brokers are friendly and professional mortgage brokers. We can access mortgages from the whole of the UK mortgage market, meaning we can get the best possible deal for our clients circumstances. Based in Manchester, we are a family business with decades of experience in financial services. Our goal is to be the most trusted regional mortgage advisory business in the northwest of England.
Our team of experts are ready and waiting to help. Contact the team below:
Phone: 0161 393 1575 // 07780 446 937
Email: hello@firstselectfs.co.uk
Visit our Contact Us page to make a formal enquiry
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