How much critical illness cover do I need with a mortgage?

There is no single right amount, but a few questions help you find a sensible starting point.

Start with your mortgage

Many people choose enough cover to clear or significantly reduce their mortgage, so their home is secure if a serious illness means they can't work for a while. With a repayment mortgage, decreasing cover that falls with the balance can keep costs down.

Think about time off work

Recovery can take months. Consider how many months of living costs you would want covered, and what sick pay or savings you already have. Income protection may suit this part better than a larger lump sum.

Choose the term

The term is often matched to the mortgage, or to when your children are expected to be independent. Longer terms usually cost more each month.

Check what you already have

Workplace schemes sometimes include death-in-service or critical illness benefits, but these usually end if you leave the job. It is worth checking before buying more cover than you need.

Balance it with your budget

Cover only helps if you can keep paying for it. Charlene can show you how different amounts and terms affect the monthly cost, so you can find a level that feels right.