Under a combined Life Insurance and Critical Illness policy, is the value of cover the same for both the life and critical illness provisions?

Yes, they will be the same - unless you have specifically instructed that the sums insured should be different.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

Is Mortgage Payment Protection Insurance the same as a Mortgage Insurance Guarantee?
No. Mortgage Payment Protection Insurance is totally different to a Mortgage Insurance Guarantee.
How Much Will It Cost?
You can have Mortgage Payment Protection Insurance for either unemployment alone, sickness and accident, or all three. The costs of the policies we sell are as follows: -
What is Mortgage Life Insurance?
Mortgage Life Insurance is sometimes called Mortgage Protection Insurance.
What is Mortgage Payment Protection Insurance?
Mortgage Payment Protection Insurance pays your monthly mortgage repayment if you were off work due to sickness, accident, or unemployment. (Don’t forget that your home is at risk if you fail to keep up the repayment of loans secured against it.)
Will you have to pay a fee to your mortgage lender if you don’t buy your Life Insurance through them?
No! By law mortgage lenders are not allowed to charge a fee if you choose to shop elsewhere.
If you have a Mortgage Life Insurance policy that supports a repayment mortgage, the sum insured automatically decreases as your mortgage repayments reduce the capital outstanding to your mortgage lender - and the value of Critical Illness cover decreases at the same rate. Therefore, if you were to become critically ill or die, your combined policy would repay the money you owed to your mortgage lender with little money, if any, left over.

If you have a normal Life Insurance policy supporting an interest only mortgage, the sum insured remains constant and fixed at the original value of your mortgage – and the sum insured for Critical Illness will be the same. Again, the effect is that if you were to become critically ill or die, then your combined policy would pay off your outstanding mortgage. There will be no surplus.

Frequently Asked Questions related to the above topic.
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