Why Add CIC to Your Mortgage Protection?
Most people arrange life insurance for their mortgage – which pays off the mortgage if you die. But what if you do not die, but are diagnosed with cancer, have a heart attack, or suffer a stroke? You may be unable to work for months or years, but your mortgage payments do not stop.
Critical illness cover pays a tax-free lump sum on diagnosis of a covered condition. Used for mortgage protection, it can clear your entire mortgage balance, removing the biggest financial pressure during your recovery.
Decreasing vs Level CIC for Mortgages
| Type | How It Works | Best For | Cost |
|---|---|---|---|
| Decreasing CIC | Cover reduces over time to match your shrinking mortgage balance | Repayment mortgages only | 30–40% cheaper |
| Level CIC | Cover stays the same throughout | Any mortgage type; also covers other needs | Higher but more flexible |
If your only goal is mortgage protection and you have a repayment mortgage, decreasing CIC is the most cost-effective option. If you want the flexibility to use the payout for other purposes too (treatment, income replacement), choose level CIC.
How Much Does Mortgage CIC Cost?
Adding CIC to mortgage life insurance typically doubles the premium. For example:
| Scenario (age 30, non-smoker, 25-year term) | Life Only | Life + CIC |
|---|---|---|
| £200,000 decreasing | ~£6/month | ~£18/month |
| £250,000 decreasing | ~£7/month | ~£22/month |
| £300,000 level | ~£12/month | ~£35/month |
Life Insurance + CIC: Combined or Separate?
You can add CIC as an “accelerated” benefit to your life insurance (the CIC payout reduces your life cover) or as a “standalone” benefit (they pay out independently). For mortgage protection, accelerated is usually fine and cheaper – if you claim for CIC and clear the mortgage, you no longer need the life cover for that purpose.
Frequently Asked Questions
Yes. You are more likely to be critically ill than die during your mortgage term. CIC clears the mortgage on diagnosis.
Roughly doubles your life insurance premium. Age 30: ~£22/month for £250k decreasing life + CIC.