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What is critical insurance cover?
Focus on family, friends, and feeling better during a time of critical illness with critical illness cover. With this insurance, you’ll get a tax-free lump sum if you’re diagnosed with a condition specified in your policy. Some use the payment to pay off the mortgage, alter the house to your needs, or give you time to plan your next steps without financial worries.
What’s the deal with critical illness insurance?
Each policy might be different. We’ll swoop in and help you decide on the right one for you and your budget. We’ll get to know your circumstances, like existing conditions, diseases, and illnesses you’ve suffered with before, and match you to the right policy.
What is Critical Illness Cover?
Critical illness cover is a type of insurance that pays out a tax-free lump sum if you’re diagnosed with a serious illness listed in your policy. Unlike life insurance, which pays out after death, critical illness cover supports you while you’re still alive, when you might need it most. The payout can be used for anything from medical treatment and household expenses to paying off debts or adapting your home. At Mortgage Matters, we’ll help you find a flexible, affordable policy that protects you and your family if your health takes an unexpected turn.
How Does Critical Illness Cover Work?
When you take out a critical illness policy, you pay regular premiums to your insurer. In return, you’re covered for a set list of serious medical conditions, such as cancer, heart attack, or stroke. If you’re diagnosed with one of the listed conditions during the policy term, the insurer pays out a one-off lump sum. Most policies run for a fixed number of years, often in line with your mortgage term or until your children become financially independent. You can choose the level of cover based on your needs, for example, enough to pay off your mortgage or replace several years of income.
When applying, you’ll be asked questions about your health, lifestyle, and family medical history. These help the insurer assess your level of risk and set your premium. The younger and healthier you are, the more affordable your cover tends to be. Some people take out critical illness cover on its own, whilst others combine it with life insurance for more comprehensive protection. This way, you’re covered not only if you pass away but also if you’re diagnosed with a serious illness during the policy term.
What Are the Benefits of Critical Illness Cover?
A serious illness can disrupt your life, not just physically and emotionally, but financially as well. Critical illness cover provides a financial safety net so you can focus on recovery without worrying about how to pay the bills. Here are some of the main benefits:
- Financial Support. The lump sum payout can be used however you choose - to cover lost income, clear debts, pay for treatment, or adapt your home to suit your needs.
- Access Private Healthcare. If NHS wait times are a concern, your payout could fund faster treatment or specialist care.
- Mortgage and Debt Protection. The payout can help cover mortgage repayments or other debts, reducing financial pressure and the risk of losing your home.
- Peace of Mind. Knowing you have cover in place can make you less anxious about the future, allowing you to concentrate on your health and family.
- Flexibility. Unlike some other types of insurance, the lump sum is paid directly to you. This means you can decide how best to use the funds, whether that’s medical care, household bills, or even taking time off work to recover fully.
- Support for Family. The payout can help maintain your family’s lifestyle and cover essential expenses, providing stability during a challenging time.
Critical illness cover helps you maintain financial stability during a very uncertain time, giving you the freedom to focus on what really matters - your health and your loved ones. With this support in place, you can take the necessary steps to recover without added financial stress, knowing your family’s future is protected no matter what.
What Does Critical Illness Insurance Cover?
Most critical illness cover includes a set list of major illnesses and conditions. These often include:
- Cancer
- Heart attack
- Stroke
- Multiple sclerosis
- Kidney failure
- Major organ transplant
- Parkinson’s disease
- Motor neurone disease
- Coronary artery bypass surgery
In most cases, the policy will only pay out if your diagnosis meets specific criteria set by the insurer. This usually means that less severe forms or early-stage diagnoses of certain conditions may not qualify for a payout. Coverage can vary between providers, so it’s important to review the policy details carefully. At Mortgage Matters, we help you understand exactly what each policy covers, ensuring you get the protection that suits your needs.
Do I Need Critical Illness Cover?
If you become seriously ill and can’t work for an extended period, your income may be significantly reduced or stop altogether. Critical illness cover can provide a crucial financial lifeline at this time, helping you manage everyday expenses and maintain your lifestyle. This type of cover is particularly important if you have a mortgage, dependents, or outstanding debts that require regular payments. It can also be valuable if you’re self-employed or don’t have access to sick pay or other financial support.
Applying for critical illness cover whilst you're healthy and younger often means lower premiums and better terms. Waiting until you’re older or have health issues can make cover more expensive or harder to obtain. Even if you have other types of insurance or savings, critical illness cover offers specific financial support during serious health challenges, giving you the freedom to focus on recovery without added financial stress.
What Our Critical Illness Insurance Covers
At Mortgage Matters, we help you find personalised critical illness cover, giving you vital protection that suits your needs and budget. We’ll guide you through the options, ensuring your policy provides the financial support you and your family might need during difficult times.
Your policy can cover the cost of your mortgage so you can stay in your home while recovering, replace lost income if you’re unable to work, pay for private medical treatment to speed up your recovery, and cover everyday living expenses so you don’t have to worry about finances while focusing on your health. We offer options to include a wide range of serious illnesses and conditions, giving you comprehensive protection tailored to your personal situation.
FAQs for Critical Illness Cover
Generally, if you're aged between 18 and 64, you're eligible to apply for critical illness cover. Your application will be assessed based on your age, health, medical history, and lifestyle factors such as smoking or drinking habits. Whilst some pre-existing conditions may limit your options, we can usually help you find a suitable level of cover.
Whilst the list of illnesses varies between insurers, most policies cover serious conditions like cancer, heart attacks, and strokes. Other commonly covered illnesses include multiple sclerosis, kidney failure, and major organ transplants. We’ll guide you through the policy wording to ensure you know exactly what is and isn’t covered.
To make a claim, you’ll need to contact your insurer and provide evidence of your diagnosis, usually from your GP or consultant. The insurer may also request access to your medical records to verify the diagnosis and ensure it meets the policy’s definition of a critical illness. They will then review your claim and inform you of their decision. If approved, you’ll receive a lump-sum payment as outlined in your policy.
Critical illness insurance can provide valuable support if you’re diagnosed with a serious condition like cancer, a heart attack, or a stroke. Your insurer would pay out a lump sum that you can use however you need, whether for treatment, everyday expenses, or mortgage payments. Whilst not essential for everyone, it’s particularly useful if you have dependents, limited savings, dependents, or minimal employer sick pay.
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Mortgage Matters are proud to be the best choice for your nest. Not only are our mortgage advisors 5-star rated, we're proud to say that our insurance products are also Defaqto 5-star rated too.
