Is Critical Illness Insurance Just the Job?
Posted in Critical Illness Cover on 09/03/2009 09:48 am by adminSummarys
It is essential to clarify the wording of policies, in particular those relating to critical illness cover. The innovative introduction of placing illnesses into groups, which will offer customers a greater choice of cover.
A small number of people are covered against serious illness even though it may occur unexpectedly. Norwich Union, the income protection provider, has carried out research that say that only 5% of the the British work force own critical illness cover, even though they will obtain a lump sum if they have a stroke, heart attack or suffer from cancer.
18 per cent of the population consider the insurance to be too dear, the survey reveals, which which accounts for the low take up.
Potential customers are also confused by the phraseology of policies and the difference between permanent medical insurance and critical illness cover.
An operational party formed by the AIB, is presently reviewing the phrasing of policies. The situation could become much more baffling if the working party decides to decrease the amount of diseases defined as a critical illness.
Norwich Union have introduced a new plan known as Elixia 123, which it claims reduces the price of critical illness cover by around 26 per cent and on occasions by as much as 49 per cent.
This will be achieved by letting clients to choose the illnesses for which they want insurance. There are three categories of risk. Group one. Heart attacks, strokes and invasive cancer. The plan will only make a settlement if the disease leads to major life style changes or is life threatening.
Category two. Conditionsthat dramatically affect life style but do not have much impact on life expectancy. Alzheimer’s, blindness and Motor neurone disease are included in this category.
Category 3. as one is unable to forecast what the future will hold.
Critical illness cover is not that pricey so it is wise to go for a comprehensive plan, which will give you complete protection.
Jennifer Green, the distribution development manager at PruHealth, is concerned about how the terms are defined. She emphasises that customers must comprehend accurately what they are purchasing. For instance, when is a condition defined as major? The 1st and the 3rd groups need explanation before buying insurance as there is not much to choose between them in her view. Difficulties can happen later if the consumer has not fully appreciated the terms of the mortgage insurance policy when they put pen to paper, says Nye Jones.