Critical illness cover aims to pay out a lump sum sufficient to repay the mortgage balance if you suffer from one of the defined critical illnesses -such as a heart attack, stroke or cancer (to name a few of the 40 or so conditions usually covered).
If you have this cover (either combined with a Life insurance policy, or separately) and were unfortunate enough to suffer one of the Critical Illnesses covered, then the Insurance company would pay you a lump sum for the amount of cover you have selected. This could be used towards repaying your mortgage, or for other purposes to aid your recovery.
This would afford you the position of having no mortgage to pay each month, in the event of diagnosis, which would dramatically reduce the household expenditure each month.
Top tip: Insurers are all different, so there are differences in both the level of cover provided and the cost, so it is vital you seek professional advice to ensure you effect the most appropriate cover for your needs.
Also, if you are thinking of adding Critical Illness Cover to your protection basket, then do call us, as we can often include Life cover for you at little or no extra cost!
Please call one of our expert Protection advisers for assistance on 01271 346123.