I received £86,000 without even paying a premium

A CIVIL servant aged 45 nearly fell off his chair when he discovered a critical illness insurance policy he thought he had only discussed with his mortgage adviser paid out in full – even though he had not paid a single premium to the provider.

The keen cyclist remortgaged his West Country family home through broker London & Country last year. At the same time he talked to the adviser about taking out a life and critical insurance plan to cover the loan. But a few days later, while on a cycle ride he suffered serious chest pains and was forced to pull over.

An ambulance was called and he ended up in hospital diagnosed with a heart attack brought on by a blocked artery.

When back at home recovering from surgery, he contacted his mortgage broker to cancel the insurance application. He says: ‘It was going to cost £100 a month and I thought there was no point having the plan.’ To his amazement, the policy from Royal London was already in place and his heart attack, one of the conditions covered by the policy, triggered an immediate payout of the sum assured – £86,000. He says: ‘I nearly fell off my chair.’

He was unaware that the insurer, on receipt of the policy application, had automatically provided free life and critical illness cover to carry him through the mortgage application period.

The money has allowed him to take his time to decide what to do with his career. He is now

back cycling to help regain his fitness. He says: ‘The money has allowed me to pay off the mortgage and to make changes in my life. I am so grateful.’

David Hollingworth, of London & Country, says: ‘Insurers are aware that people don’t necessarily want to pay for a policy until their mortgage is organised. Royal London is ahead of the game on this but some others do offer free cover for accidental death during the mortgage arrangement period.’