Critical Illness payout

[Lifebegins21]

Hi

I was diagnosed with an uncurable (but hopefully manageable) chronic cancer.
It's just me and DS12 at home. He sees his father EOW.

I took out critical illness cover when I took out my mortgage on my flat a couple of years ago. This has paid out with my diagnosis.

Would I be stupid to do anything apart from paying off mortgage with this money?

I thought about using £35k of the payout to use towards moving to a small 2 bed house with a garden if I could get another mortgage. McMillan Cancer seem to think I will be able to get one without life insurance. I would then use the rest of the money towards lowering my mortgage term.

Thanks

I think most mortgage companies would want you to have life insurance could you rent a place with a garden instead?

Life assurance is recommended but never insisted on by lenders, only buildings insurance is obligatory at completion.

Good for you for having the policy in the first place OP, whatever you do with it I hope it makes life a little easier for you and your DS.

So glad to hear they paid out for you. We also took it out and they (LV) are refusing to pay out - Dh has a brain tumour.

Mine paid out even when I had a stage one easily curable cancer.

I invested it in a buy to let which gives me a monthly income, although tax changes have made this a less desirable option nowadays. Depends on how much you get I suppose.

@MissyB1

So glad to hear they paid out for you. We also took it out and they (LV) are refusing to pay out - Dh has a brain tumour.

How are they justifying this? Mine paid out within a few days of me providing basic paperwork. I can’t remember who it was with.

Mine got paid out when exh was diagnosed with MS, we bought a second hand caravan & paid the rest off the mortgage.

Mine paid out really quickly too, MS diagnosis.

@NYnewstart
Because getting a biopsy of the tumour is dangerous (it’s brain stem), so they insist they need histology. The diagnosis has been made by Neurosurgeons on MRI scan.

Pretty mean of L.V

Thanks everyone for your replies.

@missyB1 I'm sorry to hear LV have refused your husbands claim. Is it worth appealing? I was with Legal and General and it took about a month and a half to get the decision.

I think if I had a partner or husband my decision would be a bit easier as they could take on the mortgage if i became unwell.With it just being me, I'm wondering if I would be stupid to take on another mortgage, when I can now pay off my current one. I'm so used to having very little money it's like its burning a hole in my pocket 🙃. I have to wait until my 2 year fixed deal is up before paying off mortgage if that is the route I take.

I've also been looking at campervans and nice holidays trying to pretend I'm just rich and have nothing to worry about😎

You don't have to have life insurance to get a mortgage. I don't have it as I have MS and it's very very expensive for me. However I have no dependents.

I got my mortgage after my diagnosis. If only I'd thought to get it before!