Why It’s Important to Review Your Life Cover & Critical Illness Insurance when taking out a mortgage
When taking out a mortgage, life cover and critical illness insurance are essential to protect you and your family. These policies ensure your mortgage and expenses are covered if the unexpected happens. However, as life changes, so do your financial needs, making regular policy reviews important.
Here we explain why it’s important to reassess your life and critical illness cover and how doing so can ensure you have the right protection in place.
What is Life Cover and Critical Illness Insurance?
- Life Cover: This insurance pays out a lump sum if you pass away during the policy term, helping your loved ones manage financial commitments like the mortgage, household bills, or education costs.
- Critical Illness Insurance: This cover provides a payout if you’re diagnosed with a serious illness such as cancer, a stroke, or heart disease, giving you financial relief to focus on recovery without the added burden of bills or mortgage payments.
Why You Should Regularly Review Your Policies
Life Changes: Significant life events—such as getting married, having children, buying a bigger home, or changing jobs—can affect your financial needs. A review ensures your cover matches your current situation.
Mortgage Changes: If you’ve recently remortgaged or extended your mortgage term, your existing life cover may no longer be adequate. Reviewing your policy will ensure it covers the full amount and duration of your mortgage.
Policy Expiry or Terms: Some policies may expire or have terms that no longer meet your needs. A regular review ensures that you maintain the right level of protection as you move through different life stages.
Market Developments: Insurance products evolve over time. New policies may offer better coverage, lower premiums, or additional features that could benefit you more than your current policy.
The Benefits of Updating Your Life and Critical Illness Cover
- Peace of Mind: By ensuring your policies are up to date, you can rest assured that your family’s financial future is secure, regardless of what happens.
- Cost Efficiency: A review might reveal better, more cost-effective options that fit your current circumstances without breaking the bank.
- Complete Protection: Life cover and critical illness insurance ensure that both death and serious illness are accounted for, offering comprehensive protection for your financial commitments.
Get Expert Help with Your Review
At Perry Bishop, we make reviewing your life and critical illness cover simple and stress-free. We’ll assess your current policies, help you understand if they meet your needs, and offer recommendations for better coverage if necessary.
Contact us or email us on mortgages@perrybishop.co.uk today to schedule your policy review and ensure your life cover and critical illness insurance is aligned with your current financial situation.
(There may be a fee for arranging a mortgage and the precise amount will depend on your circumstances. This will typically be £350 on mortgage offer)
*Your home may be repossessed if you do not keep up repayments on your mortgage