How Does Critical Illness Protect My Mortgage?
Critical illness pays a lump sum to clear your mortgage if you're seriously ill. Match cover to your mortgage balance. Decreasing cover is cheaper and suits repayment mortgages.
Critical illness cover for your mortgage provides a tax-free lump sum if you're diagnosed with a serious condition. This money can pay off your entire mortgage, removing your biggest financial commitment during recovery. Most people match their cover to their mortgage balance, though some add extra for fees or other debts.
Key Points
- 1Pays off entire mortgage if seriously ill
- 2Removes biggest monthly expense during recovery
- 3Match cover to mortgage balance
- 4Add 10-20% for fees and charges
- 5Decreasing cover suits repayment mortgages
- 6Level cover for interest-only or extra protection
Eligibility Criteria
- Diagnosis of covered condition
- Condition must meet policy definition
- Policy must be in force
- Survival period applies (usually 14 days)
Typical Timeframe
Claims typically paid within 4-8 weeks of diagnosis, allowing quick mortgage repayment.
Next Steps
- 1Check your current mortgage balance
- 2Decide decreasing or level cover
- 3Consider adding 10-20% buffer
- 4Get quotes from multiple providers
- 5Speak to a mortgage adviser
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ProtectionContent reviewed: January 2026