Independent Mortgage Brokers
Critical Illness cover...
This ensures that if you were diagnosed with a specified critical illness such as specific forms of cancer, heart disease or a stroke then the mortgage would be repaid provided that you survived beyond a certain period which can be up to 28 days. Often the plan will include life cover so that even if you died the sum assured would still be paid.
This type of cover means that you wouldn't have to worry about paying your mortgage on top of everything else you were going through. Many people who survive serious illnesses are unable to work again but they still need a roof over their head.
The cover does vary between different insurance companies as does the price for example one company may cover just 7 critical illnesses whilst another covers 34, therefore the cheapest cover isn't always the best.
The cover can be arranged on a level basis or a decreasing basis. Level cover means that the sum assured remains the same throughout the term of the policy. For example a plan for £60000 over a 25 year term would pay out £60000 if a claim was made in year 2 or £60000 if a claim was made in year 20. Level cover is usually used for family protection rather than covering a mortgage but there are some types of mortgages it is suitable for including an interest only mortgage linked to an ISA investment.
Decreasing cover is recommended to cover a repayment mortgage as it is designed so that the level of cover decreases in line with the balance outstanding on the mortgage. It will repay the mortgage balance at any time during the mortgage term provided that the mortgage payments have always been met.
Waiver of premium or premium protection is also an important option as this ensures that, for a few pence increase in the monthly premium, if you were unable to work due to accident or illness after a certain period say 6 months the premiums would be covered. This means that you are not in the position where you have to cancel valuable cover when you may need it the most because you can't afford the premiums.
Your home may be repossessed if you do not keep up repayments on your mortgage.
For mortgage advice you can choose how we are paid, pay a fee of usually £500, or we can accept commission from the lender.
The FSA does not regulate legal advice and some forms of mortgage.
The overall cost for comparison is 9% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration.
