Summary
For some years, Critical Illness Cover hasn’t had the benefit of a good press. Thus, its significance is vastly under-estimated. This article emphasises just how crucial critical illness insurance cover actually is.
Statistics now show that one in four of the population will be ill with some kind of cancer through out our life time. One form of cancer that has, above all played a part in this growing problem, is skin cancer .
Whilst many people do survive cancer, its brutality unavoidably has a huge effect on the patients life and employment. Nevertheless, only 10 per cent of the working public has coved themselves for a life threatening illness even with the availability of critical illness cover to particulary help in such situations.
Critical Illness insurance is becoming extremely essential. A study from RGA Reinsurer Company, who are specialist re-insurers, has revealed that the amount of critical illness claims has risen by 25% during the last year.
Most financial advisers will advise you that Life Insurance Quotes is a necessity if you possess a mortgage or dependants. However a life insurance policy pays out only if the insurance policyholder were to die so what happens if you’re taken seriously ill and can’t work?
progress in health knowledge means that people are now much more likely to survive conditions such as heart disease, cancer and strokes than 12 years ago. But surviving is not necessarily the same as being well enough to continue with your career. Lots of people survive but have to take less strenuous jobs or completely give up work. Accordingly their income drops. Consequently, financial specialists argue that critical illness insurance cover should be much higher up on people’s list of insurance priorities. They see it close to a necessity rather than an option.
As one expert put it, “Dissimilat to life insurance cover, critical illness cover pays out not if you suddenly pass away but if you develop an sickness. With Critical Illness Cover there is a large quantity of claims because we all live longer now.”
With Critical Illness cover, immediately the policyholder is diagnosed with a severe illness, the policy pays out the complete insured value as a tax-free lump sum. Providing the insured sum is adequate, this lump sum can provide the means to pay for your living expenses and pay off the mortgage. It could also be invested to provide the family with an steady income. Even if you are not required to retire because of ill health, you will be at least adequately financially safe to take extended leave or work part-time. There will not be any restrictions as to how you use the money so you might decide 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 specific illnesses covered by critical illness insurance policies does change between insurance companies and it’s vital to find the right policy. Never just blindly opt for the cheapest. For instance, many policies insure you for the onset of Alzheimer’s but with insurance company, this insurance cover ceases once the insurance holder reaches 60. With other insurance companies cover ceases at the age of sixty five. Some insurance policies will cover you against being contaminated with Human Immunodeficiency Virus (HIV) if you are assaulted and others will cover you if the Human Immunodeficiency Virus (HIV) infection is passed through a blood transfusion. To a lot of people, these may sound like ”petty details”, but with critical illness insurance cover, it’s the details that are so vital.
Like so many different types of life insurance, the younger you are when you start a critical illness policy the cheaper it will be. For example, if a non-smoker were to take out a 25-year policy at the age of 30, the monthly premium would be around 18 pounds 90 pence. This rises to 36 pounds 40 pence if the same person delayed taking out the policy until they were 35 If you wait until you are forty, this increases to £36.40p.
It is a fact that these days a growing number of single 21 to 31 year olds do not have steady partners who would financially support them should they become critically ill. Young women, particularly, should think about taking out critical illness insurance as information shows that they are more likely to make a claim than men. The report from RGA Reinsurer Company found that nearly fifty five per cent of all claims from women were from under 43 year olds against just 40% with men. But the fact is that below 32% of all critical illness insurance policies started by 19 to 35 year olds are purchased by ladies.
The claims also make known a man woman divide. Ladies account for 56% of all multiple sclerosis claims and 65 per cent of cancer claims. However, ninety per cent of heart attack claims are made by gentlemen.
