Critical Illness Protection
Do you know how your mortgage would be paid if you developed a serious illness? Critical illness protection can help ease your financial burdens so that you can focus on your recovery.
Many people would do anything to secure their dream home, but far too few consider how they could keep it if circumstances changed. Critical illness insurance can protect both your home and family.
If you are diagnosed with a critical illness, your critical illness insurance provider will supply you and your family with a tax-free lump sum, provided you meet your insurer’s criteria. In such emotional times, this type of cover can ensure that you are able to fully focus on your recovery and spend time with your family while the financial side of your life is taken care of. This money could be used to make up for a lost income, clear a mortgage, pay for private medical treatment, or be used in any other way suitable to you and your family.
Such types of protection aren’t compulsory for a mortgage, but it’s so important to consider how you will still make your mortgage payments if your income is lost in any way. If you fail to make repayments, your home could be repossessed by your mortgage lender which, in any situation, would be devastating for you and your family. To receive a critical illness insurance payment, your illness will be required to meet criteria put forward by your provider, and most policies put forward a list of around 30-40 critical illnesses. We will work with you to ensure that all of the information in your policy is accurate, so you can receive that financial assistance when you need it most.
We collectively have over 100 years of experience in arranging mortgages, so why not find out a little more about us and how we could help you protect your home and family.Find out more about our team
Critical illness protection is only one way to protect your home and family. Our Protection Guide can provide more information on how to make sure you’re suitably protected.Read our Protection Guide
If you’d like to invest in critical illness insurance, find out more information, or if you’re just considering your options for the future, please get in touch today. Our services are always free.Get in touch
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“Thank you so much for all your hard work in securing our mortgage. Without your help, we would not now be looking forward to moving into our dream house.”Alison & Anthony
“If you have an unusual set of circumstances whereby a straightforward mortgage may not be on offer, Derbyshire Mortgage Services excel at finding you the right product to meet your needs at no extra cost and with no added hassle. I would never use another company for business or personal circumstances.”Dawn
When it comes to your critical illness protection, we want to help you find a policy suited to you and your family’s needs. The most important thing for us is making sure that your protection covers you, your family and your lifestyle at some level, whatever your budget. Critical illness insurance policies typically fall into two main types of cover:
- Level Term Insurance – within such a policy, the amount of cover (or ‘sum assured’) will be fixed at the same level throughout the policy term. At the beginning of the policy you will set out the sum assured and the policy term. Most people take out this type of critical illness insurance policy to help pay off a mortgage, and it is especially useful for interest-only mortgages since the outstanding capital will not decrease over time.
- Decreasing Term Insurance – in this type of policy, the cash lump sum that will be paid out in the event of your critical illness will decrease over time. As a result, these policies are best suited to repayment mortgages, where the outstanding capital also decreases over time, and the policy can be arranged to ensure that the sum to be paid out is in line with your outstanding mortgage. This decreasing cover also means you are likely to pay cheaper premiums.
How you use the sum of money provided by your insurer in the event of your critical illness is completely up to you and where you feel the money is best used and most needed. We will always help you find the best policy for your situation, as well as ensuring that all of the information in your policy is correct to give you peace of mind that you will receive the financial support you need when you need it most.
Critical Illness Protection Help!
Do you have questions about critical illness protection? You might find the answer here or in our Protection Guide. If you have further queries, however, please call us for free.
If I have a mortgage, should I have critical illness protection?
Critical illness protection isn’t compulsory for a mortgage, but you need to consider just how your family will be able to make mortgage payments should you suffer from a serious illness.
If your family can’t make the mortgage repayments, your mortgage lender may repossess your home. At an already emotional and difficult time, this could be devastating for your loved ones.
Can I get critical illness protection if I don’t have a mortgage?
Yes! Your mortgage is just one of many things in your life that needs protecting. Should you suffer from a serious illness and be unable to work, the sum paid out by a critical illness insurance policy can ease any burden on yours and your family’s finances, so that you can focus on recovery.
Do I need other insurance?
You will always require buildings insurance as a condition of your mortgage lender, but the amount of contents or additional life cover you choose to invest in is completely your decision.
The amount of protection you invest in should depend on your budget and circumstances. For example, if you are a single person who rents a property, your insurance needs will differ greatly to a family with a mortgage. If you are unsure of the level of protection you need, or want to learn more about different types of protection, feel free to call us for free, or take a look at our Protection Guide.
I’ve had medical problems in the past – will that mean I can’t get critical illness insurance and protection?
Previous medical problems can impact the types of cover you can get and at what cost, but it might still be possible for you to get cover, depending on your circumstances. If you are unsure whether you will be able to get critical illness protection or any other life protection, please contact one of our expert advisors – they will be able to help assess your situation and let you know what’s available.
When should my cover start?
It’s never a good idea to delay any form of protection. It’s always best to get your cover in place as quickly as possible as you never know what might happen in the future.
Some forms of life insurance and income protection might also take a little more time to put in place than insurance for your home or contents, so it’s best to prepare sooner rather than later.
How do I apply for critical illness insurance?
We believe all aspects of mortgages and protection should be as stress and hassle free as possible. We will help you find the right cover for your circumstances and complete the application process for you. Our services are also always free, so we will never charge you for the help we provide.
What is the difference between critical illness insurance and life insurance?
Both critical illness insurance and life insurance policies will provide a tax free lump sum, but a life insurance policy will only pay out in the event of your death. A critical illness insurance policy will instead pay out once you are diagnosed with a critical illness (subject to the insurer’s criteria).
In both cases, the money can be used as you like – for bills and mortgage payments, medical care, paying off other debts, or just to replace a lost income. For more information on both life and critical illness insurance, take a look at our Protection Guide, visit our life protection webpage, or contact us for free.
What information do I need to apply for critical illness protection?
When applying for any level of protection insurance you will need certain documents and details available, including your medical history and existing policy information. For a list of required information, take a look at our Protection Guide. If you have any questions, please don’t hesitate to get in touch with one of our advisors for free.
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