Category: Specific protection products · Reviewed by Matt Bartlett, Director · Founder · Last reviewed 2026-06-10
Critical illness cover for mortgage protection is a critical illness policy structured to repay the outstanding mortgage balance on the diagnosis of one of a defined list of critical illnesses during the policy term. The cover is normally provided as a “combined life and critical illness” policy paying on the earlier of death or diagnosis. The list of conditions and their definitions follow the ABI Statement of Best Practice for Critical Illness Cover.
Category: Specific protection products Also known as: Mortgage CI ABI list: Standard core conditions Related concepts: Group critical illness, Decreasing term assurance for mortgage protection, Mortgage protection insurance
Combined life and critical illness cover for mortgage protection is widely sold. On the diagnosis of a covered condition, the benefit is paid out and the policy terminates; if no covered condition occurs but death does, the benefit is paid on death. CI cover is significantly more expensive than life-only cover because the probability of a CI claim during a 25-year term is much greater than the probability of death.
FCA regulated under ICOBS. The ABI Statement of Best Practice for Critical Illness Cover (current revision 2023) standardises the wording of medical condition definitions.
Standard mortgage CI covers the ABI core conditions including cancer (with defined severity exclusions), heart attack, stroke, multiple sclerosis, kidney failure, coronary artery bypass surgery, and others. Enhanced cover adds further conditions and partial payments for less severe variants.
A couple takes out a £300,000 25-year combined life and critical illness DTA policy. Premium is approximately £50 per month (compared with £20 for life-only). One of them is diagnosed with breast cancer satisfying the ABI definition; the policy pays £300,000 to clear the mortgage; the policy terminates.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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