Amy Kadir Lonsdale Mortgages broker and member of the Lonsdale St Albans mortgage broking team reviews the need for critical illness cover.
This is the second of a series of articles that consider why we recommend our clients annually review their protection policies.
What is Critical Illness cover?
Critical Illness insurance pays out a chosen lump sum if you are diagnosed with a critical illness or disability and covers the critical illnesses specified in the policy documentation, usually serious or long-term conditions. Cover lasts for the period chosen for example until the mortgage is repaid or until retirement age.
Critical Illness cover can be added to a life insurance policy (level or decreasing term assurance) so the policy pays out in the event of death or an earlier critical illness, or it can be purchased as a standalone policy.
‘I always discuss protection policies when I meet clients and offer mortgage advice. If you or your partner are working and the family rely on you financially I would recommend looking at different types of critical illness cover. Critical illness can affect people at any age, and it is worth considering how you would pay your mortgage and household bills if you were unable to work. Depending on the type of insurance you purchase you may be protected against various illnesses including cancer, stroke, heart attack and coronary bypass surgery.
‘I would initially recommend all employees check if your employer offers group critical illness protection. This is an employee benefit that offers a lump sum payment to an employee if they suffer a serious illness. If they don’t and you are paying a mortgage please contact us on 01727 845500. We can assess your individual financial circumstances and offer mortgage advice that includes a critical illness protection review. Remember to review any protection policies you have annually to make sure you are using the best provider for your financial circumstances.’
We recommend not to cancel any existing policies prior to taking advice and having a new policy already in place.