Alongside life assurance we always recommend critical illness cover. This is a type of insurance that will provide you with a lump sum payment if you were to be diagnosed with a critical illness during the term of the policy. This can be used to repay a mortgage in full or to provide additional cash in order to pay for expensive treatment or care or to provide a replacement of the affected party's income.
This can be considered an even more crucial insurance than life coverdue to increased life expectancy. Critical illnesses are becoming more and more treatable and people are recovering at much greater rates than ever before. It is obviously a fantastic thing that people are recovering from serious illness but it does raise other issues. The affected party may have been unable to work and may have required expensive care. With just life assurance in place the policy would only have paid out if the person had died. If the affected person survived there would be no insurance payment, the mortgage would remain in place and the income may have stopped. Without critical illness cover attached to the policy nothing would be paid out but your position financially may become very difficult.
Due to the frequency of critical illness in people under 65, the cost of this cover is high in comparison to life cover and is one of those plans that you hope is never used - but if a claim has to be made it becomes priceless.