What is an Excess Period for Mortgage Payment Protection?
Question asked by Maisie Langridge
I’m considering either a Critical Illness policy or a Life Insurance policy to cover my mortgage. Is there anything that’s combined?
With Life Insurance policies it is possible to include Critical Illness Cover which means that the plan would pay out if you were to suffer a serious illness or injury as well as if you passed away.
Policies typically cover around 40 medical conditions, including cancer, heart attack and stroke. However, there are policies which cover fewer than 10 illnesses and those which cover more than 100, so it pays to read the policy wording carefully.
The exact conditions covered and the definitions of those conditions will vary according to the provider and will be stated in the policy documentation. This can get confusing, so it pays to get advice when you’re considering adding Critical Illness Insurance to Life Cover.
With Mortgage Life Insurance, Critical Illness Cover can be added to both level term and decreasing term policies.
With a level policy the amount of cover doesn’t fall over time, making it suitable for an interest-only mortgage. With a decreasing policy, the amount of cover falls over time, matching the decline in the amount owed on a repayment mortgage.