Understanding the Importance of Critical Illness Cover to Mortgage Holders

As we age and the world around us changes, it becomes more important in an unpredictable world to seek financial protection wherever possible. In the past, critical illness was thought of as something that affected the older generation, but today, a critical illness can affect anyone, and with so much at stake financially for young adults, getting the right cover for such an event is an important consideration. Owning a home and paying a mortgage is arguably one of the most responsible forms of financial lending, so what happens if the unexpected happens? How can you ensure that your house remains paid for, and your family remains secure? This is where Critical Illness protection comes in.  

What is Critical Illness Cover (CIC)?

Critical Illness Cover is a type of insurance that provides financial protection when diagnosed with a serious illness. It offers a one-off, tax-free payment upon diagnosis helping to pay for treatment, mortgage or rent payments, or home changes such as wheelchair access if needed. It can be confusing when taking out life insurance to assume this includes critical illness cover, however, they are separate types of insurance. With life insurance, if you were to die during the duration of the policy, your chosen beneficiaries would receive a lump sum, however, with critical illness cover, you receive the payout before the person dies. You will often find that many insurance providers offer the 2 products together as a bundle.  

Why Are More Young Adults Purchasing CIC Today?

In a bid to safeguard their financial future, 79% of young adults are now contemplating purchasing CIC due to a changing landscape. Critical illnesses include heart attacks, cancer, and strokes, among other conditions and young adults are becoming more aware of their financial responsibilities and the risks that run alongside them, taking proactive steps to protect themselves and their families financially.  

What are the Benefits of Purchasing CIC at a Young Age?

For young adults premiums tend to be lower as they generally have better health than those over a certain age, making it cost-effective by locking in early and enjoying long-term financial security. It also offers peace of mind that in the event of a serious illness, outgoings are taken care of and you can focus on getting better or ensuring the time you have is financially secure for you and your family.

How can Your Mortgage be Affected by Critical Illness?

Critical illness can derail any future, big life plans such as owning a home, or if you are already a homeowner, continuing to pay the mortgage can fall by the wayside as medical costs creep up. If you are unable to work due to a serious illness and your employer is unable to provide you with more than statutory sick pay, then the payout provided by critical illness cover may be needed, to ensure that you can keep up mortgage payments and remain in the comfort of your own home. Without adequate protection, you could risk the security of you and your family and loss of your home. By securing critical illness cover, you're taking proactive steps to protect your home and family from the unforeseen and the sense of security allows you to focus on your recovery without the added worry of financial hardship looming over you.  

Get the Protection you Need from a Trusted Mortgage Broker in Manchester

When considering critical illness cover assess your individual needs and circumstances such as your age, health status, existing insurance coverage, and mortgage terms, as this will influence the type and amount of cover that's right for you. At Taylormade, we are more than just your expert mortgage adviser in Manchester, all our consultants are fully trained and cover the whole of the market, helping you find the right cover for you and your family. For peace of mind, speak to our experts to ensure you get value for money and the right protection cover for your circumstances. We are your trusted mortgage broker in Manchester, and we are here to help you today.