Ignoring The Hot Issues With Critical Illness Cover
Summary
For some years, Critical Illness Insurance has not benefited from a good press. Thus, its significance is greatly under-rated. This article emphasises just how crucial critical illness insurance cover really is.
Figures now show that two in five of the population will endure some form of cancer through out our life time. And it is skin cancer that has predominantly played a part in this escalating problem .
Whilst numerous people do recover from cancer, its seriousness unavoidably has an enormus impact on the sick persons’ life and employment. Yet would you believe it, only 11% of the employed have insured themselves for critical illness despite the availability of critical illness cover to particulary help in such circumstances.
Critical Illness insurance is turning out to be progressively more necessary. An assessment from Swiss Re, who are expert re-insurers, has made known that the number of critical illness claims has risen by 24 per cent over the past twelve months.
Most financial consultants will say that life insurance is a must if you have a mortgage or dependants. However life insurance pays out only if the insurance policyholder were to die but what if you couldn’t work because of serious illness?
Developments in medical knowledge means that people are now very likely to survive conditions such as cancer, strokes and heart disease than 12 years ago. But surviving is not necessarily quite the same as being well enough to continue with your career. Lots of people survive but have to retire or take less stressful jobs. Their income dives as a result of this. Therefore, financial experts say that critical illness policies should be a good deal higher on people’s list of protection insurance priorities. They see it as a must have rather than being optional.
As one insurer put it, “Different to life insurance cover, critical illness insurance pays out not if you suddenly die but if you become infected with an llness. With Critical Illness Cover there is a much higher level of claims because of longevity.”
With Critical Illness cover, once the insurance holder is diagnosed with a serious illness, the policy pays out the whole insurance cover as a tax-free lump sum. Provided that the insurance cover is sufficient, this lump sum can generate the funds to pay off the mortgage and other debts. It can even be invested to provide the family with an ongoing income. Even if you’re not required to give up work because of severe sickness, you will be at least adequately financially protected to take extended leave or work part-time. There are no restrictions as to how you use the money so you may prefer to put the money towards medical treatment. 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 particular conditions covered by critical illness insurance policies does fluctuate between insurers and it’s essential to find the right policy. Never just blindly opt for the cheapest. For example, many policies cover you for the onset of Alzheimer’s but with insurance company, this cover ceases once the policyholder becomes 60. With other insurance policies cover ceases at the age of sixty five. Some insurers will cover you against being infected by HIV if you are attacked or assulted and other insurers will cover you if the HIV infection is passed through a blood transfusion. To a lot of people, these may sound like “mere details”, but with critical illness insurance cover, it is so important to make sure the details are right.
Like so many different types of life insurance, the younger you are when you take out a critical illness insurance cover the lower the price will be. For instance, a non-smoker aged 30 taking out a twenty five year policy, the monthly premium would be nineteen pounds and fifty pence. This jumps to 36 pounds 40 pence if the same person delayed taking out the policy until they were forty If you wait until you are 45, this increases to 38 pounds and 20 pence.
Sadly these days a rising number of single 21 to 31 year olds do not have stable partners who would financially support them should they become seriously ill. Young Ladies, above all, should contemplate taking out critical illness cover as data shows that they are much more likely to make a claim than gentlemen. The report from GE Frankona Re found that nearly 60% of all claims from ladies were from under 41 year olds compared with just 39 per cent with men. But it is a fact that lower than 33 per cent of all critical illness policies started by 19 to 35 year olds are taken out by females.
The claims also expose a man woman split. Ladies account for fifty five per cent of all cancer claims and 65% of cancer claims. Then again, 91% of heart attack claims are from males.
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