Illness Insurance

Critical Illness Insurance. Big changes on the horizon

In recent years sales of critical illness insurance have flagged. The

primary cause is the huge 70% increase in premiums experienced during

recent years. For many, critical illness insurance has simply priced

itself out of the market.

It's not that critical illness insurance is a bad idea. After all it

pays out a lump sum if the policyholder is diagnosed with one of the

many critical illnesses listed on the policy and the policyholder

survives at least 28 days from diagnosis. (Note: some policies have a 14

day survival period.) Most policies have a huge list of insured

illnesses although about 60% of claims are for cancer - not surprising,

as 1 in every 3 people will develop cancer sometime in their lifetime.

In fact when you look at the concept of Critical illness insurance you

can easily make a case that everyone living on earned income should have

a policy. It's designed to give you a pot of capital to live on if

serious illness prevents you from working normally.

Critical Illness Insurance

Premiums have increased dramatically because medical advances have meant

that many illnesses that proved fatal in the past are becoming quicker

to detect and easier to treat. Hence insurance companies have found

themselves paying out earlier on claims and on illnesses which are not

necessarily debilitating - which was the original purpose of critical

illness insurance.

To give you a better idea of the sort of illnesses we're talking about,

here's a typical list:

  • Alzheimer's Disease
  • Aorta Graft surgery
  • Bacterial Meningitis
  • Blindness
  • Brain Tumour
  • Cancer
  • CJD
  • Coma
  • Coronary Artery by-pass surgery
  • Coronary Artery Angioplasty
  • Deafness
  • Heart attack
  • Heart Valve replacement/repair
  • HIV/AIDS resulting from blood transfusion
  • Inability to perform your duties of occupation
  • Kidney failure
  • Leukaemia
  • Loss of limbs
  • Loss of speech
  • Major organ transplant
  • Motor Neuron diseases
  • Multiple Sclerosis
  • Occupational HIV/AIDS
  • Paralysis
  • Paraplegia
  • Parkinson's disease
  • Stroke
  • Third Degree burns
  • Any illness that results in Total and Permanent disability
  • Insurance companies have at last realised that they're not going to get

    anywhere marketing policies that people can't or won't afford, and where

    the companies can't afford to lower prices. So it now looks as if

    insurers such as Scottish Widows are considering a break through -

    splitting the cover so that the prospective policyholder can specify

    which illnesses he or she wants to insure against. It's a form a "menu

    pricing" - cover for each illness would have a price and you simply

    select which illnesses you want to insure against.

    Whether such insurance proves popular will very much depend on the cost.

    For example, if cancer accounts for around 60% of current claims, you'd

    expect the premium for covering cancer alone to be about 40% cheaper

    than a full strength critical illness policy. We'll have to wait and see.

    The Price of Critical Illness Insurance

    If you're interested to find out how much a standard critical illness

    policy would cost you, you'll find it cheapest on the Internet. The best

    sites to look out for are the independent discounting brokers who deal

    with all the big insurance providers. These brokers can search the whole

    market for you, come up with the cheapest insurer, and discount their

    price. Try to use a broker who'll also give you personal advice on the

    phone as some policies do vary in the scope of their cover.

    Article Resources:

    ====================

    Michael writes for Scrouge Life Insurance who offer < life insurance quotes and

    critical illness insurance. Click here for more [l="http://www.scrouge-online.co.uk/faqs/faq-home.htm]life insurance

    topics [el]

    Written By: Michael Challiner

    Copyright: 2005

    Contact Email: Michael@andromedawebs.co.uk

    Contact Phone: 01477 535919


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