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More than half of homeowners under 40 have no critical illness cover

by: Paloma Kubiak
  • 29/09/2016
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More than half of homeowners under 40 have no critical illness cover
The majority of homeowners under 40 who have a mortgage have failed to take out critical illness cover, with many oblivious as to what it means.

The Mortgage Advice Bureau (MAB) found that 52% of homeowners aged 18-40 do not have critical illness cover (CIC) in place.

Its survey also revealed that more than a third thought that cover was too expensive, while 30% didn’t think they needed it.

MAB said there was “an evident lack of awareness of CIC”, particularly with younger homeowners aged 18-24, as 42% didn’t know what it is.

Brian Murphy, head of lending at MAB, said: “As a society we don’t like to plan for the worst, and there’s a tendency for younger homeowners to stick their heads in the sand and hope for the best. Yet having a critical illness policy in place can take away the worry of how you would cope financially, giving you peace of mind should the worst happen.”

He said there’s also a preconception that cover can be costly, but in reality £75,000 of CIC for a non-smoker born in 1991 working in an office environment, would be £12.15 per month.

“It’s important for those who are getting on or moving up the property ladder to understand what financial protection is available to them, and also to build it into their monthly household budgets,” Murphy added.


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