Critical Illness Mortgage Cover

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Life insurance has been designed to protect your loved ones financially if you pass away, helping to reduce the financial impact that can often come hand in hand with the death of a loved one.

Providing peace of mind that your family will not have to bear the financial brunt of your passing, life insurance pays out a cash sum to your loved ones in the event of your death. There are a wide variety of different life insurance policies available, providing different levels of cover to meet your individual circumstances. 

When looking for a life insurance policy, you will need to select how much cover you need and how long you need the policy for. Once you have done this, the insurer will then provide a quote, outlining the monthly or annual premium of your policy.

Not everyone needs life insurance or chooses to take out cover. Whether you feel the need to have a life insurance policy in place comes down to your individual circumstances. For example, if you have a partner, child or other dependants that rely on you financially, life insurance can be incredibly beneficial and put your mind at rest.

If you are yet to make a decision regarding life insurance and you are looking for more information about this type of cover, we have created a helpful guide outlining everything that you need to know about life insurance.

How does life insurance and critical illness cover work?

There are two main types of life insurance: term life insurance and whole of life insurance. But what is the difference? Term life insurance sets a maximum term and pays out a cash sum if you die during that period, if you do not die during the term, there will be no lump sum payable. Alternatively, you can opt for whole-of-life insurance, which will ensure you are covered until you pass away, no matter your age.

With both types of policy, a cash sum will be paid out if you pass away as long as you keep paying your monthly premiums. When choosing a life insurance policy, it’s entirely up to you to decide how long you would like your cover to last for and whether you would like single cover or joint cover. 

Critical illness cover will cover you if you are diagnosed with a terminal or critical illness and pay out a lump sum to assist you at a time when you might not be able to work due to your illness.

Benefits of life and critical illness insurance

Both types of policies offers a host of benefits, and are particularly important if you own a property with a partner, or have children or any other dependants that rely on you financially. The benefits include:

  • Helps to protect your loved ones financially 
  • Can help to reduce the financial stress of losing a parent or partner
  • Provides peace of mind that your loved ones will be looked after
  • Can help compensate for a loss of earnings in the event of your death
  • Can be put towards any unpaid debts that will fall to loved ones
  • Can contribute towards funeral costs
  • Can provide you with a lump sum payment when diagnosed with a terminal or critical illness

Who doesn’t need it?

You may not need life insurance if:

- you’re single

- your partner earns enough for your family to live on

- you’re on a low income and could be eligible for state benefits.

If you’re not sure whether you would benefit from life insurance, you should seek professional financial advice.

Do I need life insurance for a mortgage?

Contrary to popular belief, you do not need to take out life insurance in order to get a mortgage. However, one of the main reasons why people take out life insurance is to ensure that their families can carry on paying the mortgage in the event of their death.

If you require any more assistance or you wish to talk through your life insurance options, it’s always worthwhile speaking to the professionals. Here at Charters Financial Services, we are always on hand to offer the very best life insurance advice. Get in touch to find out more on 03454 500 200 or 

Critical illness cover is designed to help reduce the financial impact of a critical illness on your family. 

Providing a tax-free lump sum if you are diagnosed with a pre-defined illness, medical condition or disability, this form of financial protection will give you the peace of mind that you and your family will be financially secure if you can no longer work due to illness. 

Critical illness policies generally cover major illnesses such as cancer, heart attacks, or stroke, and other long-term illnesses that alter your standard of life and result in you having to take a substantial amount of time off work or having to give up work completely. 

What does critical illness cover?

There are many providers offering critical illness cover, and the right policy for you will depend on your needs and current circumstances. Of course, when looking for any protection policy, it’s always worthwhile shopping around and doing your research to ensure you get the best possible deal, as well as the right level of cover. 

The vast majority of critical illness policies cover: 

  • Cancer
  • Heart attack 
  • Stroke
  • Loss of arms or legs and major disabilities 
  • Diseases such as multiple sclerosis or Parkinson's disease

All polices cover numerous life-changing illnesses and conditions, but make sure you check your policy as not every type of illness is covered. 

How does critical illness work?

Critical illness is designed to support you and your family if you are diagnosed with a life changing critical illness. 

And in the event that you become critically ill, your insurer will either offer partial payments for less severe illnesses​ or pay out a lump sum to ensure that your family’s quality of life is not impacted due to your inability to work. 

If you have a partner or dependants that rely on your income, it’s definitely worth taking out a policy. 

Why choose Charters Financial Services?

If you would like to talk through your critical illness cover options, make sure you speak to the professionals. Here at Charters Financial Services, we are always on hand to offer the very best critical illness and life insurance advice. Contact us today, our friendly experts are on hand to help.


Critical illness cover is a type of health insurance policy that will give you peace of mind and can provide a considerable payout if you’re diagnosed with a life-threatening illness. Illnesses covered vary widely depending on your critical illness policy provider, but a number of core conditions are traditionally covered by all:

  • Cancer
  • Heart attack
  • Kidney failure
  • Coronary artery bypass
  • Stroke
  • Multiple sclerosis
  • Major organ transport
  • Permanent disability caused by an illness or injury

Critical illness policies usually carry a number of specific conditions that would render a claim invalid, so always check the exclusions to ensure you’re adequately covered. These exclusions could include pre-existing medical conditions, minor heart attacks or early cancer diagnoses.

In contrast to income protection insurance that provides you with a regular payout to replace your lost income, critical illness cover gives you a lump sum, tax-free payment that you can use to pay your mortgage, your living expenses and, if required, your treatment.

Why you should consider critical illness cover:

  • If you don’t receive any benefits that would cover you for long-term sickness from your employer.
  • If you don’t have enough savings to pay for your care or your living expenses if you become ill and can’t work.
  • Depending on your financial circumstances, you may be able to claim statement benefits of around £100 per week – if that isn’t enough, critical illness can bridge the gap.
  • If you’re single and don’t have any dependents, critical illness will give you a one-off payment as opposed to a payment they’ll need in lieu of your income.

The cost of premiums for a critical illness policy will vary according to your age and health, i.e. the level of risk you represent to your insurer, so it’s important that you talk to an independent financial adviser who’ll have access to multiple products from trusted insurers across the entire market.

If you’d like to know more about critical illness protection, talk to our team or insurance specialists and we’ll help you find the most suitable cover. Call us on 08454 500200 or click here to make an enquiry.

I can highly recommend Charters Financial Services. I was happy with the level of service that I received when arranging my first mortgage after my advisor secured the best mortgage to suit my needs compared to competitors. I dealt directly with Marie and she couldn’t have been more helpful. She proactively contacted me to keep me updated about the progress of my application and made every effort to help during the pandemic which proved challenging. Marie explained the process in simple terms and responded quickly to any queries. She was reliable and a pleasure to deal with.


August 2020

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