When buying a home or investing in a property, critical illness cover is an option most of us consider, and while it can be tempting to live in the moment and look to save a few precious pounds for a greater deposit or to reach a higher property price bracket, it’s important to think about the long-term.
None of us can predict the future but the reality is that a serious illness can impact our ability to maintain our income levels and pay a mortgage, should the unthinkable occur.
What is critical illness cover?
Critical illness cover is an insurance product or protection policy which is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of a predetermined list of specific ‘critical’ illnesses.
Although each policy will have individual criteria, critical illness cover can replace lost income while the policyholder is unable to work and help to cover the costs of care and treatment. Some policies will also provide access to medical advice from doctors both during and after treatment of the diagnosed condition.
What are the benefits of critical illness cover?
• Financial benefits
There is no doubt that the diagnosis of a critical illness will have an immediate and potentially life-changing effect on a person. Critical illness cover will provide a financial cushion to help cover mortgage payments and everyday bills. Often, it’s not just the policyholder who will be affected by a diagnosis as a spouse or family member may well need to take time from work to help the person during treatment and as they rehabilitate. In some instances, a person’s home may need adaptation, costly treatment or medication, and critical illness cover can help cover some of these additional costs which could put a strain on the whole household.
• Emotional support
Along with the financial impact that diagnosis of a critical illness can have, there are often emotional feelings of guilt or nervousness about being able to get back to work and to resume normal life. This pressure can impact a person’s recovery and cause unnecessary stress. Critical illness cover can help to cover household bills during recovery and reduce anxiety during treatment and rehabilitation.
Critical illness cover for breast cancer
A client who had taken out critical illness cover with NM Finance was diagnosed with breast cancer. As the primary income in the household, being unable to work while she underwent treatment would have had a serious impact on both her family’s finances and her emotional wellbeing. Instead, the critical illness policy she had taken out with NM Finance provided a payment of £200,000 which covered her household expenditure while she underwent treatment and ensured she had the time to recover fully, without further unnecessary pressure or worry.