What Does Mortgage Critical Illness Insurance Cover?

Most people are aware that Life Insurance for mortgage protection is designed to pay out a lump sum to repay the loan should the policyholder die within the policy term.

With this type of insurance it is very common to include Critical Illness Cover so that the plan could also pay out if the policyholder were to suffer a serious illness or injury during the policy term.

Leading critical illness plans will cover around 40 ‘critical illness conditions’, which are specifically named in the insurer’s policy terms. Common conditions covered include illnesses such as cancer, heart attack and stroke, and injuries such as paralysis, blindness and third degree burns.

The value of Critical Illness Insurance is that the mortgage loan could be repaid should one of these serious illnesses or injuries occur, leaving the policyholder without the financial burden of having to meet mortgage repayments during a time when the sole focus should be on recovery.