When you organise cover with our team you will get the following benefits:
Compare providers
Our expert advisors can help you find the best policy from many large providers such as Legal & General, Aviva, Vitality and Scottish Widows. We also have access to solutions from various smaller specialist providers.
No fee to advise & arrange
We don't charge to discuss your requirements; there are no fees for us to research and explain your cover options, we don't even charge to arrange the cover, organise a trust and even write your Will at the same time - no fees whatsoever!
Will Writing Services are referred to our Sister Firm. Neither Dunham McCarthy Financial Services Ltd or PRIMIS are responsible for the service received. These services are not regulated by the Financial Conduct Authority they are instead regulated by the Institute of Professional Willwriters and have alternate consumer protection.
Explain products & options
Critical Illness cover, serious illness cover, accident & sickness, income protection - with so many options let us explain each and help you find the right cover for you and your family.
Health based recommendation
When we make a recommendation we take into account your health, family history and lifestyle, this means that when we give you a price, it is less likely to be adjusted following the underwriting process.
Review existing policies
As part of the advice process we always take a look at any existing policies that you have in place and review them to ensure they are the most comprehensive and competitive available.
Free last will & testament
When you take a policy with Dunham McCarthy Mortgages our colleagues at Mylastwill.co.uk are happy to provide a full, legally binding last will and testament without charge - it's all part of the service!
Policies written into trust
To minimise delays and reduce Inheritance Taxes, we can write you policy into a discretionary trust, again no charge!
What is Critical Illness Cover?
Critical illness insurance, often referred to as critical illness cover, is an insurance policy that pays you a lump sum of money, should you be diagnosed with one of the pre-determined illnesses covered within the policy.
The lump sum of money is designed to support you – and your family, with the life changing circumstances brought about by the illness. The money can be used to pay the mortgage, household bills or equipment required to facilitate the necessary lifestyle changes due to your illness.
Critical illness payments are not classed as income so you will not be taxed on any sum you receive.
What types of illnesses does Critical Illness Insurance cover?
Typically, critical illness covers you for cancer, hear attack, stroke, organ failure, multiple sclerosis, Parkinson’s disease and Alzheimer’s disease.
In most cases, critical illness covers you for around 40 illnesses / conditions although the amount can vary from between 10 to over 100!
What types of Critical Illness Insurance are there?
Whilst products vary from provider to provider, typically there is ‘Level Term’ and ‘Decreasing Term.’
Level Term Assurance
This type of cover pays out a fixed sum with premiums that do not alter from month to month.
Decreasing Term Assurance
This is where the amount that the insurer agrees to pay, reduces over time. As time goes on, your monthly premiums reduce since technically, there is less risk to the insurer due to the reduced sum assured
Do I need Critical Illness Insurance?
The answer to this is that, if you can afford it, it is always a good idea to have such an insurance policy in place – particularly if you are the main earner and that you have a family that depends on you.
It’s worth understanding that whilst you might be entitled to some form of state benefit(s) these most likely won’t amount to very much; usually around £100 a week which isn’t a lot – especially if you have a family.
Before taking out a policy, it’s also worth, if you are employed, looking into what might be available from your employer – this might help determine the amount of additional cover you require.
How much does Critical Illness Insurance cost?
Whilst critical illness cover can start from as little as £10 a month, there really is no ‘average or typical cost, since there are many varying factors:
a)
Age
generally the younger you are, the healthier you are and the less you might have by way of personal debt (mortgage, loans e.t.c) – therefore, you are considered a much lower risk and this is reflected in the amount of cover required and the premiums paid. By contrast, a person in their 50’s, with a considerable mortgage left to pay and possibly some health issues might find themselves paying around £100 a month.
b)
Health
This naturally plays a huge part in the cost of the premiums because of possible risk of illness and death. For example, an ongoing illness such as heart or blood pressure issues will have an effect; so to will things like smoking or drinking.
c)
Family History
Your family’s medical history is reviewed by insurance providers because it can be an indicator of your future health. If for example your parents or siblings have struggled with a particular illness, your premiums may be increased.
d)
Lifestyle
Are you a keen skydiver or involved with motorbike racing or mountain climbing? High risk hobbies can make a difference to the cost of life cover.
e)
Provider
Like any product or service it depends whom you choose to place your business with. It pays to shop around, do some research and to take some professional advice.
Does Critical Illness Insurance always pay out?
Actually the majority of critical illness claims are successful and pay out, Aviva and Legal & General for example pay our 97.8% and 93.4% of life claims respectively. Inevitably, there will always be a small number of cases where claims are turned down. This can be for a variety of reasons:
* Aviva claims statistics 2023, , Legal & General claims statistics 2022
You need also to be aware that some providers / policies can state how serious a condition needs to be before it will pay out.
Where should I get my Critical Illness from?
There are many sources – as quick look online will indicate. As always, ‘knowledge is key’ and it pays to spend some time comparing what seem to be similar offerings. The devil is very much in the detail – and cheapest isn’t always the best answer!
It costs nothing to get some advice from a well – established specialist like Dunham McCarthy Mortgages who already know the best providers and who fully understand the small print ramifications.
