Life insurance, critical illness cover and income protection
Understand what life insurance, critical illness cover and income protection are designed to do, and how to review your household protection needs.
By PMS Mortgages · Mortgage & Protection Advice
Updated 8 October 2026 · About our mortgage and protection adviser
A mortgage creates an ongoing payment, but the household income supporting it can change unexpectedly. Life insurance, critical illness cover and income protection address different events. Understanding those differences helps you ask more useful questions than simply which policy costs least.
Start with the people who depend on your income, the commitments they would need to meet and the support already available through work or existing cover.
What life insurance is designed to do
Life insurance generally pays a benefit if the insured person dies while the cover applies, subject to the policy terms. That money can help dependants meet mortgage and living costs.
The amount and type of cover matter. A policy designed around a repayment mortgage may have a reducing benefit, while other cover may maintain a level amount. A policy that broadly follows mortgage borrowing may not also provide enough money for childcare, household costs or other needs. Review the purpose of the cover rather than assuming one figure answers every concern.
What critical illness cover is designed to do
Critical illness cover pays a benefit if you meet the policy's definition of a covered condition. It is not a promise to pay for every serious illness, and the condition names alone do not explain the full cover. Definitions, severity requirements, exclusions and any additional benefits need checking.
A payment might help reduce borrowing, support recovery or meet extra costs. Consider how a lump sum would be used and whether regular income would still be needed if you were unable to work. Two policies with the same sum insured can have materially different terms.
What income protection is designed to do
Income protection can replace part of your income when illness or injury prevents you working under the policy's incapacity definition. Payments normally begin after an agreed waiting period, often called the deferred period.
Check both the overall policy term and the maximum period payable for a claim. Some arrangements can pay for a limited period per claim rather than until retirement. The occupation definition and how earnings are assessed also matter. Income protection is not normally cover for unemployment or redundancy.
Check what you already have
Ask your employer for the actual sick pay and workplace benefit details. Separate the period of full pay from any reduced pay, and check the conditions. For self employed people, consider how drawings and business expenses would be affected by time away from work.
Review existing policies before replacing anything. Underwriting, exclusions or pricing may have changed since cover began. Keep existing cover in place until any replacement has been assessed and you understand the consequences of switching.
Set priorities around the household budget
Write down essential monthly spending, including mortgage or rent, bills, food and childcare. Then identify the income and savings available in different situations. Ask how long savings could bridge a waiting period without using money needed for another purpose.
With a limited budget, decide which shortfall needs attention first and discuss the trade-offs. These policies can complement each other, but a combination is not automatically necessary or affordable for every household.
Review the terms as well as the premium
Check benefit amounts, policy and claim periods, deferred periods, premium structure and whether cover changes over time. Give accurate answers to application questions and clarify anything you are unsure about.
PMS Mortgages provides mortgage and protection advice for households in London and across the UK. Speak to a mortgage adviser to review your priorities and existing arrangements. The aim is cover that addresses an identified need and fits a budget you can maintain.
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Book a consultation with a mortgage adviser
General information only. Advice depends on your circumstances and the relevant lender or insurer criteria. Cover is subject to policy terms, underwriting and exclusions.
Further reading
• MoneyHelper: critical illness cover
• MoneyHelper: income protection
Explore protection advice
Life insurance advice — discuss cover for the people who depend on you.
Critical illness cover advice — understand insured conditions and policy definitions.
Income protection advice — explore support for household income if illness or injury stops you working.
Frequently asked questions
No. A claim must meet the policy's definition and any relevant severity requirements. Read the covered conditions, exclusions and benefit terms.
Income protection is normally designed for inability to work because of illness or injury, rather than unemployment or redundancy. Check the policy wording.
Keep existing cover in place while the replacement is assessed. Confirm the new terms, exclusions, start date and consequences of switching before cancelling.
Thinking about your own mortgage?
Speak to an adviser about what this means for your situation. There is no charge for an initial conversation.