Is it a good idea to add Critical Illness Insurance to my Mortgage Life Insurance?

If you get Critical Illness cover included on your Life Insurance policy, your mortgage will be repaid if either you die or you are diagnosed with a critical illness which is included in your policy.

Each insurance company provides an extensive list of illnesses which qualify for a pay-out (see a typical list below). The important thing to note is that with a "Critical Illness" you may well survive for very many years and those will be years during which your earning power may be nil or very severely restricted.

It is worth noting the following:

1 in 5 men suffer a critical illness before their normal retirement age.

1 in 6 women suffer a critical illness before their normal retirement age.

35% of men and 46% of women who develop cancer survive at least 5 years

78% of stroke victims survive more than a year.

Typical illnesses covered by Critical Illness Insurance

The following list names the illnesses that are likely to covered by the policy. But please be aware that lists do vary a little between insurance companies.

Alzheimers disease

Angioplasty

Aorta graft surgery

Aplastic anaemia

Bacterial Meningitis

Benign brain tumour

Blindness

Cancer

Coma

Coronary artery by-pass surgery

Creutzfeldt-Jakob disease

Deafness

Dementia

Heart attack

Heart valve replacement or repair

HIV or AIDs from an assault, blood transfusion, occupational duties or accident

Keyhole heart surgery

Kidney failure

Loss of independent existence

Loss of limbs

Loss of speech

Major organ transplant

Motor Neurone disease

Multiple Sclerosis

Paralysis/Paraplegia

Parkinson's disease

Stroke

Third degree burns

Total permanent disability

Cover for children

Your chosen Life Insurance Company will provide a full list of all the illnesses within their Key Feature Document. This document will be sent to you by your life insurance adviser.

What is the difference between Terminal Illness Cover and Critical Illness cover?

Terminal Illness cover only pays out if you are diagnosed with a terminal illness and your doctor expects you to die within 12 months . It is usually included free on all good Life Insurance policies.

Critical illness cover immediately pays out if you are diagnosed with any illness listed on your policy. The essential point is that there is no condition relating to your life expectancy. This is very important. Remember that 35% of men and 46% of women who develop cancer survive at least 5 years and 78% of stroke victims survive more than a year. Critical Illness Insurance can be expensive and becomes much more expensive the older you become.

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