Critical Illness Cover
Sometimes life can throw you a curve ball. That’s why ensuring you are covered financially is essential.
Protecting Your Mortgage, Income And Family Financially
For many homeowners, a mortgage is their largest long-term financial commitment.
While life insurance can help protect loved ones financially if the worst happens, many people also want protection in place if they suffer a serious illness during the mortgage term.
Critical illness cover is designed to provide a lump sum payment if you are diagnosed with a specified serious illness covered by the policy.
At Oportfolio Mortgages, we regularly advise clients on critical illness cover alongside their mortgage arrangements to help provide greater financial security for homeowners and families.
What Is Critical Illness Cover?
Critical illness cover is a type of insurance designed to pay out a lump sum if the policyholder is diagnosed with a serious medical condition covered within the policy terms.
Common conditions covered may include:
- Cancer
- Heart attack
- Stroke
- Multiple sclerosis
- Certain neurological conditions
The exact illnesses covered will vary depending on the provider and policy selected.
Many homeowners choose critical illness cover for mortgage protection to help ensure there is financial support available if illness affects their ability to work or maintain mortgage repayments.
If you would like a more detailed explanation, you can also read our guide: What Is Critical Illness Cover? Your Questions Answered.
Why Is Critical Illness Cover Important For A Mortgage?
For many households, mortgage repayments rely heavily on regular income.
A serious illness can potentially impact:
- Earnings
- Employment
- Household finances
- Long-term affordability
This is one of the main reasons many homeowners arrange mortgage critical illness cover alongside their mortgage.
In our experience, borrowers often focus heavily on securing the right mortgage product but spend less time considering how illness could affect their financial stability long term.
Critical illness insurance can help provide a financial safety net during extremely difficult circumstances.
How Does Critical Illness Cover Work?
If the policyholder is diagnosed with a condition covered by the policy and meets the insurer’s claim criteria, the policy may pay out a tax-free lump sum.
The money can potentially be used for:
- Mortgage repayments
- Clearing outstanding borrowing
- Household bills
- Medical costs
- Time away from work
- Family financial support
The amount of cover and conditions included will vary depending on the specific critical illness policy chosen.
Video: The Benefits of Critical Illness Cover | Gary Landes' Story
How Much Critical Illness Cover Do You Need?
The amount of critical illness coverage required will depend on:
- Mortgage balance
- Household income
- Dependants
- Existing savings
- Financial commitments
Some homeowners arrange enough cover to repay the mortgage entirely.
Others choose broader protection to help support ongoing household expenses and income needs.
In our experience, reviewing both short-term and long-term financial commitments is extremely important when arranging mortgage protection.
Video: Do I Really Need Critical Illness Cover?
Why Reviewing Your Protection Matters
Many homeowners arrange protection when purchasing a property but do not revisit it for years afterwards. However, circumstances often change over time.
It may be worth reviewing your critical illness cover after:
- Moving home
- Remortgaging
- Having children
- Increasing borrowing
- Changes in income or employment
Regular reviews can help ensure protection remains suitable for your current circumstances.
Speak To Oportfolio About Critical Illness Cover
If you are looking for critical illness cover for mortgage protection or would like to review your existing protection arrangements, feel free to get in touch.
We would be happy to discuss your circumstances and help you understand the options available.
We strive for the highest standards of client care and are committed to offering tailored mortgage, insurance and personal protection policies that match the unique aspirations of every single client.