Permanent Insurance has designed critical illness mortgage, a critical illness product aimed at homeowners.
The product is a stand alone critical illness policy that would appeal to borrowers who are not covered by any life policy and those who do have an existing policy but who want the additional benefit of critical illness cover.
Borrowers who have switched from an endowment mortgage to a repayment mortgage and have kept the endowment going as an investment would also find this attractive. They would already have life cover and could add the critical illness cover separately.
Critical illness mortgage covers a full range of 29 conditions and premiums are based on the amount of mortgage cover required, the person's age, sex and smoking status.
Scottish Provident' s self assurance mortgage is a similar product as it offers critical illness cover aimed at homeowners. Like the Permanent product, it has a minimum premium of £10 a month and has no charges.
A 30-year-old non-smoking male requiring critical illness cover on a £80,000 mortgage over 25 years would pay £13.65 a month with Permanent Insurance and £11.77 a month with Scottish Provident.