Diagnosed with Cancer? Why 'Critical Illness Cover' is More Important Than Life Insurance for Paying Your Mortgage
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| Diagnosed with Cancer? |
Most homeowners in the UK dutifully buy Life Insurance when they get a mortgage. They think, "If I die, the house is paid off for my family."
That is a responsible thought. But statistically, you are far more likely to suffer a serious illness (like cancer, heart attack, or stroke) before you retire than you are to die.
If you survive a stroke but cannot work for 2 years, your Life Insurance pays £0. Your income stops, but the mortgage bills keep coming. This is the financial gap that destroys families. And this is exactly why you need Critical Illness Cover (CIC).
What is Critical Illness Cover?
Critical Illness Cover is a long-term insurance policy designed to pay out a Tax-Free Lump Sum of cash if you are diagnosed with one of the specific illnesses listed in the policy.
- It is NOT "Health Insurance": It doesn't pay hospital bills (the NHS does that). It gives YOU cash to spend on whatever you want (paying off the mortgage, adapting your home, or daily bills).
- It is NOT "Life Insurance": You don't have to die to claim it. In fact, it is designed to help you live financially secure while you recover.
The "Big Three" Conditions
While policies vary, the vast majority of claims in the UK come from just three main categories:
- Cancer: (Note: While standard policies exclude early-stage cancers, modern "Severity Based" policies often offer a smaller partial payout for less advanced diagnoses).
- Heart Attack: (Of a specified severity, typically requiring proof of blocked arteries or enzyme levels).
- Stroke: (Resulting in permanent symptoms lasting at least 24 hours).
Most comprehensive policies also cover Multiple Sclerosis (MS), Parkinson’s, and crucially, Total Permanent Disability (TPD).
Why Do You Need It? (The Mortgage Saver)
Imagine you have a £200,000 mortgage.
You are diagnosed with bowel cancer. You need surgery and chemotherapy. You will be off work for 12 months. In 2026, Statutory Sick Pay (SSP) is only around £122 per week. That won't even cover your heating and council tax bills, let alone the mortgage.
💰 With Critical Illness Cover:
Upon diagnosis, the insurer transfers £100,000 (or your cover amount) to your bank account.
- You can use £50,000 to pay down a chunk of your mortgage to lower monthly payments.
- You can use £20,000 to replace your lost salary for the year.
- You can use £10,000 for private treatment or a recuperation holiday.
The money gives you the freedom to focus on recovery instead of worrying about repossession.
Bonus: Free Cover for Your Children
Many people don't realize this, but most high-quality Critical Illness policies automatically include Children's Cover (often up to £25,000) at no extra cost. If your child falls seriously ill, this payout allows you to take unpaid leave from work to be by their bedside without financial stress.
Combined Policy vs. Standalone
You can buy CIC in two ways:
- Combined with Life Insurance: This is cheaper. However, it usually pays out only once. If you claim for cancer, the policy ends, and you have no Life Insurance left.
- Standalone: You buy separate Life Insurance and CIC. This is more expensive but ensures you have double protection (e.g., you claim for cancer now, and the Life Insurance remains active).
The Price of Survival
Modern medicine is amazing. People are surviving heart attacks and cancers that used to kill them. But survival comes with a price tag.
Critical Illness Cover is not cheap—it is often 4-5 times more expensive than Life Insurance. But ask anyone who has made a claim, and they will tell you it was the best money they ever spent.
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