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Critical Illness Cover
The most purchased form of mortgage protection
insurance in the UK is currently the critical illness coverage.
Although it is not compulsory insurance in order to be granted a
mortgage, protecting our investment against the possibility of our
becoming too ill to make the payments has become greatly important
to many people that are considering homeownership.
Becoming critically ill unexpectedly can have consequences far
beyond the devastation of the actual illness. Many times this
devastation is compounded by the fact that the loss of income will
make it impossible for most people to survive financially. Most of
us are one major illness away from utter financial destruction, and
sadly your home may be one of the first things that you could lose.
Critical illness coverage offers some peace of mind in knowing that
should you be diagnosed with a critical illness by a registered
medical provider you will be issued a tax free payment in one lump
some that may be used to pay off your mortgage. Your policy may also
allow you to use a portion of the payment to either pay medical
bills or hold in reserves to cover future medical bills.
What constitutes a critical illness is usually something such as a
serious heart attack or a cancer diagnosis. What qualifies as
critical illness may vary between insurers. You should be sure what
illnesses will qualify as you investigate which policy is the one
right to protect your family. Although they may not cover every
serious illness, many times you can add permanent disability
coverage for added security.
Specifics of the pricing on critical illness insurances are
dependant upon your current health and other risk factors. Much like
other life insurance, rates are determined by age and health risks.
For example those people who smoke or have other health risks will
have higher rates than those for a person who does not smoke and is
in generally good health.
When you are faced with the agony of dealing with critical illness
in your family, the last thing that anyone should have to worry
about is the loss of your family home. Critical illness coverage can
offer you and your family the security of knowing that should you
become seriously ill, you will not lose your home. Consult a
financial advisor and determine how much coverage you need and what
policy serves you and your family the best.