Most people are aware that life insurance for mortgage protection is designed to payout a lump-sum to repay the loan should the policyholder die within the policy term.
With this type of insurance it is very common to include critical illness cover so that the plan could also payout if the policyholder were to suffer a serious illness or injury during the policy term.
Leading critical illness plans will cover around 35 ‘critical illness conditions’, which are specifically named in the insurer’s policy terms. Common conditions covered include illnesses such as cancer, heart attack and stroke, and injuries such as paralysis, blindness and third degree burns.
The value of critical illness insurance is that the mortgage loan could be rapid should one of these serious illnesses or injuries occur, leaving the policyholder without the financial burden of having to meet mortgage repayments during a time when the sole focus should be on recovery.
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 020 8432 7333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.