Critical Illness Cover: Protect Your Lifestyle, Not Just Your Mortgage
- MRG
- 6 days ago
- 2 min read
Imagine receiving a severe diagnosis—cancer, stroke, multiple sclerosis—while also juggling your mortgage, bills, and family commitments.
A tax-free lump sum at that moment could transform stress into financial stability. In fact, UK insurers paid out £136 million in critical illness claims last year, with an average payout of £67,267
What Exactly Does It Cover?
Critical illness policies protect against a defined list of serious medical conditions—typically including cancer, heart attack, stroke, organ failure, MS, Parkinson's, and moreBut beware: not all cases qualify. Early stage or less severe illnesses often don’t meet insurer thresholds, and each provider has its own definitions, meaning clear policy wording is vital.
Critical Illness Cover vs Income Protection vs Life Insurance
Critical Illness Cover: pays a one-off lump sum upon diagnosis of a covered illness
Income Protection: replaces monthly income if you're unable to work—ongoing benefits, not a lump sum
Life Insurance: pays out only if you die—critical illness and life cover can be combined for full protection
Pros and Cons of Critical Illness Cover
Advantages
Lump-sum assistance with mortgages, bills, or adaptations to your home
Tax-free payout, giving flexibility in how you use the funds
Peace of mind, especially if you’re self-employed or living in an expensive property market
Drawbacks
No return on premiums if you never claim
Strict definitions mean some serious conditions may be excluded
Cost varies based on age, health, occupation, and lifestyle—and premiums may increase over time
Real Stories: Why It’s Crucial
One UK family paid under £15/month total and received £100,000 when both partners were diagnosed—saving their home and recovery. Conversely, a barrister spent over £80,000 on premiums but was denied a claim due to a technicality, highlighting the importance of clear definitions and professional advice.
Key Things to Check Before You Buy
Condition list & definitions – Confirm what illnesses are included and how severe they must be
Policy type – Choose between level (fixed payout) or decreasing cover (aligns with mortgage reduction)
Survival periods and exclusions – Know what happens if you do not survive post-diagnosis, and what lifestyle factors (smoking, risky hobbies) could void cover
Premium structure – Decide whether to lock-in guaranteed premiums or opt for cheaper but reviewable rates
Disclosure – Fully declare health history—undisclosed conditions may lead to claim rejection
MRG Private Clients: Your Critical Illness Cover Specialists
At MRG Private Clients, we understand the high cost of living, property ownership, and family responsibilities in Essex, London, and the South East. Our team will:
Analyse your financial commitments and health risks
Recommend the right mix: standalone or bundled life + critical illness cover
Help you navigate complex policy definitions and exclusions
Source policies with competitive premiums and comprehensive definitions
Review your cover regularly to ensure it evolves with your needs
Protect more than just your mortgage—protect your lifestyle.
Speak to an MRG advisor today and safeguard your future with tailored critical illness cover.
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At MRG Private Clients, we believe in providing our clients with personalised guidance and support when it comes to making important financial decisions. We are based in Medway, Kent but offer our specialist mortgage services nationwide. Learn more about our specialist mortgage services >
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