Helen Jeffreys is 27 and following the purchase of her first property, with a mortgage of £100,000, is looking to purchase a critical illness plan. Helen is a non-smoker and in good health, however, her mother was diagnosed with multiple sclerosis aged 48. There is no other family history of the disease. Would any exclusions or loadings apply to the plan and if so, which would be the best policy to meet her needs?
Simon Platt, Life Policies Direct Helen should consider a policy providing both life cover and critical illness (CI) protection – generally a cheaper option than a standalone CI policy. Decreasing term assurance would be most suitable to run alongside a repayment mortgage, as the cover would decrease in line with the outstanding amount on the mortgage. Level term assurance would pay out a fixed amount in the event of death during the term, and would be suitable for an interest-only mortgage or for general cover. A decreasing term assurance plan incorporating death or earli...
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