Don't overlook the importance of critical iliness cover.
What is critical illness cover and do I really need it? In all honesty we all hope that we will never need it.
Critical illness cover or critical illness insurance is a long term insurance policy which covers serious illnesses listed within a policy. These illnesses vary from policy to policy but most cover conditions such as:
stroke heart attack certain types and stages of cancer conditions such as multiple sclerosis
If you get an illness or injury listed in your policy, then it will pay out a tax free, one off payment. Of course, the amount will vary according to the policy and illness you have, but it tends to be a large lump sum which can help to pay your mortgage, rent, debts or alterations to your home such as wheelchair access should you require it.
Every year, 1m workers in the UK unexpectedly find themselves unable to work because of injury or illness, according to the Association of British Insurers (2015).
If you do find yourself unable to work because of an illness or injury, then the Employment and Support Allowance (if you are eligible) ranges from around £70 to just over £100 a week. For many this will not be enough to replace their income.
Our mortgage brokers here at Mortgage Advice UK are trained financial advisors and are well equipped and experienced in providing excellent financial advice including critical life cover.
We recently received some sad news that one of our clients, Becci, had been diagnosed with breast cancer. Julie had been her mortgage advisor and fortunately, when Becci took out her mortgage, Julie advised them on the best life cover which included critical illness insurance. As a result of this advice and the policy they took out, they have had a pay-out which has enabled them to pay off their mortgage, other debts and have a little left over to undertake some home improvements.
More importantly it has allowed Becci to focus on getting well and fighting her cancer without worrying about how herself and her family might cope financially.
Becci said, “I just wanted to let you know that we’ve had our critical illness payout and have just paid off the mortgage! Typing those words feels unbelievable!
I can’t thank you enough for making sure we had this cover - I can’t even really remember us discussing it! I just knew that I trusted your advice and that you would choose the right policy for us.
I can’t tell you how much of a difference your help and advice has made to our lives. What could have been a much more worrying and stressful time has been made so much easier because of your expertise!”
We can’t emphasise enough how important it is for people to ensure that they are adequately covered against all eventualities. As such, it is an important part of the service our advisors offer when finding the right mortgage and protection products for all our clients.
What a fantastic feeling knowing we give our clients the absolute best advice and in this particular case have made a difficult time so much easier and less stressful to deal with.