Life Cover Blog

Few of us are covered against serious illness even though it may be fall us unexpectedly. Standard Life, the income protection provider, has carried out investigations that reveals only 5 per cent of the the British work force have critical illness insurance, even though they will collect a large sum if they have  a stroke, heart attack or suffer from cancer.

16 per cent of people believe the cover to be too expensive, the analysis reveals, which which accounts for the low take up.

Would-be customers are also perplexed by the phrasing of policies and the disparity between permanent health cover and critical illness insurance.

An operational party put together by the Association of British Insurers, is at this time re-evaluating the wording of policies. The situation may become much more  perplexing if the working party decides to decrease the number of illnesses defined as a critical illness.

Standard Life have unveiled a new plan called Elixia 123, which it declares reduces the price of critical illness cover by around 25 per cent and sometimes by as much as 45 per cent.

This will be accomplished by permitting customers to pick the illnesses for which they require insurance. There are 3 groups of risk. Group one. Heart attacks, strokes and invasive cancer. The insurance will only pay out if the condition is life threatening or leads to major life style changes.

Category 2. Conditionsthat significantly affect life style but do not have much impact on life expectancy. Alzheimer’s, blindness and Motor neurone disease  are included in this category.

Group three. Conditions

Critical illness cover is not that expensive so it is advisable to go for a comprehensive insurance, which will give you peace of mind.

Susan Pilks, the distribution development manager at PruHealth, is worried about how the jargon is explained. She emphasises that clients must understand precisely what they are purchasing. For example, when is an illness defined as major? The first and the third categories need explanation before taking cover as there is not much difference between them in her view. Difficulties can happen later if the client has not fully appreciated the terms of the policy when they Moria Jennings.

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