What is Critical Illness Cover?

What is Critical Illness Cover?


Here at Stonebrook Mortgages, we offer advice on a number of different personal protection (or insurance) policies, such as Life Insurance, Critical Illness Cover, Income Protection and Family Income Benefit.

You don’t have to be reviewing or applying for a mortgage with us either. We can review your circumstances and/or current insurance policies, and provide you with a bespoke recommendation for you and your family.

In this blog, we’ll look at Critical Illness cover and what that means.

What is Critical Illness Cover?

Critical Illness Cover is an insurance policy which pays out a lump sum to the policyholder if they are diagnosed with a specified serious illness.

The types of illness that are usually covered are heart attack or stroke, certain cancers, multiple sclerosis and Parkinson, along with many others. Each insurance provider has their own exhaustive list of illnesses which are covered, along with other life changing occurrences, such as loss of limbs, blindness, and total permanent disability.

How does it help?

Critical Illness Cover can provide much needed financial support to you and your family if you are diagnosed with a specified serious illness, whilst you are undergoing any treatment you may need to have, or if you’re unable to continue to work as a result of the illness or disability.

It can be linked to your mortgage balance or can pay out a lump sum of your choice which would cover, for example, your income for a number of years. It’s your choice and the amount would depend on your personal circumstances, preferences and budget available for the monthly payments.

How much does it cost?

As with other insurance policies, the cost is paid monthly to the insurance provider via a monthly premium. The cost varies from person to person, depending on a number of factors, such as lifestyle (smoking, drinking, height and weight), existing medical conditions, and age. With all this in mind, we’d definitely recommend taking out a critical illness policy at a younger age, and switching to a healthier lifestyle if possible.

When do I get the payout?

It’s important to contact your insurance provider as soon as possible after diagnoses so that, if your claim is successful, you will receive your payout when it’s most needed. As long as you have been completely honest on your application and the illness you have been diagnosed with is covered by your policy, then there should be no issues with your claim.

The lump sum is paid straight to the policyholder and can be spent however they deem fit. There are no restrictions on what it can be spent on, event if it’s linked to your mortgage balance.

At Stonebrook Mortgages, we want to make sure you and your family are provided for, no matter what. We have appointments available face-to-face or via Zoom, or simply a telephone call, so why not contact us today to discuss your protection needs and receive your bespoke recommendation.

Stonebrook Mortgages is a trade name of Just Mortgages Direct Limited, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.

Approved by The Openwork Partnership on 24/01/2024