What would life be like if you were diagnosed with a serious illness? Things could change very suddenly.
You’d get your family together and tell them what was going on. Before long, you’d start spending time in hospital for treatment. You may also need to take some time off.
It’s hard to know what the financial impact of all this would be for you and the people who depend on you.
Critical illness cover provides a financial cushion should you suffer a serious illness, such as cancer, heart attack or stroke.
If you are diagnosed with any of the conditions listed in your policy, the policy provider will pay out a tax free amount, whether a lump sum or monthly amount. This could for example help pay your mortgage, rent, bills, care costs or allow you to make changes to your property, should you need it to. It could even pay for that round-the-world trip you’d always wanted to take.
State benefits might not be enough to replace your income if something goes wrong and you can’t work because of long-term sickness or disability.
If you’re eligible, Employment and Support Allowance ranges from around £70 to just over £100 a week, depending on your circumstances and the seriousness of your illness or disability.
- You should look at getting critical illness cover if:
- You don’t have enough savings to tide you over if you become seriously ill or disabled
- You don’t have an employee benefits package to cover a longer time off work due to sickness.
You might not need it if:
- You have enough savings to fall back on and can cover expenses such as bills, loans, medical costs or a mortgage
- You have a partner who can cover living costs and any shared commitments, such as a mortgage
- You already have some cover included in as part of your employer’s employee benefits scheme.
Your monthly payments will depend on a number of factors, including:
- The amount of cover you take out
- Whether you smoke or have previously smoked
- Health (your current health, your weight, your family medical history)
- Job (some occupations carry a higher risk than others and might mean you have to pay more each month.
Think carefully before securing other debts against your home. your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secutred on it. If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
Mortgage Maze is a trading style of Charles Frank Finance Ltd. Charles Frank Finance Ltd is authorised and regulated by the Financial Conduct Authority. See https://register.fca.org.uk - FCA number 624668. Our Data Protection Registration is Z2962200.
There may be occasions when the firm charges a fee. This is dependant upon your circumstances, but it will normally be no more than 1% payable on completion.