Summary
During the last few years, Critical Illness Cover hasn’t benefited from a good press. As a result, its significance is vastly under-rated. This article emphasises just how imperative critical illness insurance in reality is.
Data now shows that one in three of the population will be ill with some form of cancer through out our life time. And it is skin cancer that has predominantly played a part in this escalating problem .
Whereas lots of people do survive cancer, its ruthlessness undoubtedly has an enormus effect on the patients life and employment. Nevertheless, only 10 per cent of the United Kindom’s protected themselves for a life threatening illness despite the accessibility of insurance to particulary help in such circumstances.
Critical Illness cover is becoming more and more necessary. A study from Lloyds reinsurance, who are one of the top re-insurers, has revealed that the number of critical illness claims has gone up by by 25% during the last year.
Most financial advisers will advise you that life insurance cover is a necessity if you have dependants or a mortgage. However life insurance settles only if the insurance holder were to die so what happens if you’re taken seriously ill and can’t work?
Advances in medical knowledge convey that people are now very likely to survive conditions such as cancer, strokes and heart disease than fifteen years ago. But surviving is not necessarily quite the same as being fit enough to resume your career. Many people recover from the condition, but have to retire or take less stressful jobs. Their income dives as a result of this. Therefore, financial specialists say that critical illness insurance cover should be far higher on people’s list of insurance priorities. They see it close to a necessity rather than being optional.
As one adviser put it, “Dissimilat to life insurance cover, critical illness insurance pays out not if you suddenly die but if you become infected with an sickness. With Critical Illness Insurance there is a much higher level of claims because of longevity.”
With Critical Illness Insurance, once the insurance holder is diagnosed with a critical illness, the policy settles the whole insurance cover as a tax-free lump sum. So long as the insured sum is adequate, this lump sum can yeald the means to pay for your living expenses and pay off the mortgage. It may perhaps be invested to provide the family with an steady income. Even though you’re not required to retire because of severe sickness, you should at least be sufficiently financially protected to work part-time or take extended time off. There are no restrictions as to how you use the money so you may prefer to put the money towards your medical costs. Should you have to claim, critical illness cover provides a lump sum that gives you the flexibility to take whatever steps you need to take.
The specific illnesses covered by critical illness insurance policies does vary between insurers and it’s vital to find the correct policy. Do not just go for the cheapest. For example, many policies cover you for the start of Alzheimer’s but with one, this cover stops once the insurance holder reaches the age of 60. With others cover stops at the age of sixty five. Some insurance policies will cover you against being infected by HIV if you are attacked or assulted and others will cover you if the Human Immunodeficiency Virus (HIV) infection is passed through a blood transfusion. To some, these may sound like ”trivial details”, but with critical illness insurance cover, it is so important to make sure the details are right.
Like many forms of life insurance, the younger you are when you start a critical illness policy the cheaper it will be. For instance, if a non-smoker were to take out a 25-year policy at the age of 30, the monthly premium would be £19.50. This jumps to £36.40 if the same person delayed taking out the policy until they were 35 If you wait until you are 40, this increases to £38.20p.
It is a fact that these days a growing number of single 20 to 30 year olds do not have stable partners who would support them should they become critically ill. Young women, above all, should think about taking out critical illness cover as data shows that they are more likely to make a claim than males. The report from Lloyds reinsurance found that nearly 50% of all claims from women were from under 41 year olds against just forty one per cent with men. But the fact is that lower than thirty two per cent of all critical illness insurance policies started by 20 to 36 year olds are taken out by ladies.
The claims also make known a male female divide. Ladies account for fifty six per cent of all cancer claims and 66% of cancer claims. On the other hand, 90% of heart attack claims are made by gentlemen.