This is obviously a well funded research association with statistics that can’t be easily dismissed so how do these figures compare with previous years?  I’ll be there is quite a difference.  In these turbulent times it is well known that when the going gets tough, polices get cancelled.  At the same time it is also worth knowing that these policies were cancelled in a very stressful time.  People could literally not afford to make payments each month and had to save money wherever they could.  To make matters worse there are some in the medical industry that will say that stress brings on illness and causes death which is precisely the time that these policies are needed.  Talk about the worst of both worlds.

The term dread disease is not used very often now.  It became critical illness mainly due to the increasesed amount of illnesses covered.  Critical illness is the widely used name now although it is still also known as serious illness insurance, crisis cash and living assurance.

The male death reductions were mainly due to decreases to lung, prostate and colon cancer deaths whereas the women’s death rate drop was mainly due to breast cancer and colorectal cancer. These death rate decreases are a result of better treatment and prevention. Obviously cancer was still diagnosed in each case but it was treated and lives were saved.

This is good news in the on-going war with cancer. We all know that medical science and treatment gets more advanced as each year goes by but it is good to actually see some figures to show just how much better treatment is. Even so, more than 1500 people in the USA will have died each day in 2009 from cancer so there is still a huge amount of work to be done.

With critical illness claims settlement history on the up this can only mean that more and more people will realise the benefits of critical illness and buy cover. Over 1.5 million people are diagnosed with cancer each year in the USA alone so if more of those people had critical illness insurance how many more lives could be saved? There is no doubt that having a lump sum of money can buy better treatment and get that treatment quicker too. Not all cancer treatments are available of national health care plans so if your life depended on it surely it would be worth paying for?

There have never been figures published showing the exact financial impact on families during a cancer or critical illness diagnosis. Of those 1500 people who die each day in the USA how many had critical illness cover and just how much of a difference did it make to the family finances? Of those who didn’t have cover how many faced losing their homes while they were still in hospital because they couldn’t pay their mortgage and household bills?

Critical illness cover is here to stay and as long as critical illness sales continue to rise and cancer death rates continue to fall then everyone will be far better off.

Ask any one in the street if they would accept free critical illness cover and just about everyone (I’m guessing here) would say yes so there is clearly value in the product as far as consumers are concerned. So what stops people from just going out and buying cover for themselves?  Could it be that they don’t want to have to visit a financial adviser who will then tell them that they should consider other products too?  Could it be that the product is complicated and they haven’t the time or inclination to find out what is the best product for their needs?  The answer is probably both.

The internet is changing this though.  It is now possible to find out more information about critical illness policies and what is offered.  It is possible to get free online quotes too through websites like this.  However, anyone wishing to purchase critical illness insurance should be able to do it easily and correctly so advice is something that should be considered before you buy.  The more specialist websites such as this there are in the future, the more people will be inclined to just buy cover of their own accord without being ‘sold’ it.  This in turn will make critical illness cover a more polular product and sales will increase.

Below are two illustrations, the first showing likely monthly premiums based on non-smokers accepted on standard terms for life insurance only over a 25 year level term assurance with a sum assured of £100 000.  The quotes are based on occupation category 1 and are valid at the time of publication.

Life and critical illness quotes are as follows:-

Both sets of quotations include our 50% commission rebate which lowers your premiums.

As you can see, critical illness cover, for all of its benefits does not actually cost that much on a month to month basis when you consider that a cup of coffee is often more than £2.00.

If you have been thinking about critical illness cover do not delay, request a personalised quotation today by clicking here.

1. ‘If I die then my girlfriend will just have to move out and find her own place.’  This romantic said this whilst his girlfriend was sat next to him.  They had been together for 16 years and she had followed him and his job around the globe.
2. ‘Critical illness is just a massive con – they never payout, everyone knows that! ‘- Despite the fact that I had shown claims settlement history for 4 of the largest life assurers.
3. ‘If I get a critical illness and can’t work I’ll just have to start selling myself on the streets.’  Not sure this guy had really weighed up his options.
4. ‘I just can’t justify spending money on critical illness.  I can see why it is worth insuring a Mercedes but not myself.’
5. ‘If I get cancer I’ll just work through it.’
6. ‘I’m not bothered about life insurance as I’m not likely to die but I am interested in buildings and contents insurance.’  – Did this maths teacher know something I didn’t?
7. ‘I’m not bothered about life and critical illness insurance right now.  My main priority is pet insurance for the new puppy.’
8. ‘If I get a critical illness we’ll just sell the house and move in with my mum.’  – I wonder if this guy had discussed his plans with his parents, or his wife for that matter?
9. ‘I’m fit and healthy so I’m not going to get a critical illness am I?’
10. Why would I want to waste money on life assurance?  I’d much rather spend the money on the lottery.’

For a start the insurances are very different.  Life insurance only pays out when you die (unless you have built critical illness into the policy) whereas pet insurance takes care of all of the unexpected vet bills.  To a certain extent I can understand why someone might think of pet insurance first as it doesn’t cost much and the benefits are clear.  What I can’t understand is when couples and families think that pet insurance is worth spending money on but life insurance isn’t.

I don’t have pets but if I did I would probably want some help with paying vets bills.  I do have a wife and children and I definitely wouldn’t want them to suffer if I died yet there are a lot of men and women in the same position who don’t want to spend money on life insurance.  Why?  It doesn’t cost much.  The family needs to be looked after whether you are alive or dead.

The obvious answer to all of this is pet insurance AND life insurance.  If one makes sense then surely the other should too?  If someone is that convinced with the benefits of pet insurance then logic states that they would be falling over themselves to have some critical illness cover but somehow logic never comes first place.

According to Friends Provident, Critical Illness Cover may well be the product to provide them with the opportunity to do so….

Mark points out that customers may not realise that debilitating critical illnesses are increasing. At the same time, advances in medicine mean that survival rates are higher than ever before. For example cancer death rates in the UK have fallen by 11% over the last ten years¹.

These figures mean that more people are surviving critical illnesses which also means that many of them have to cope with the long term effects of those illnesses.  Many people cannot return to work for a considerable amount of time, if at all.  Lifestyles are also effected too.  The National Statistics body cites that the number of people reporting restricted activity due to illness doubled from 1972 to 1996, and the proportion has remained relatively stable since².

Critical Illness Cover is obviously a product that can protect people against these circumstances.

Friends Provident realises that Critical Illness Cover has had negative press in the past, which has obviously deterred people from taking up the cover.  However, Friends Provident have taken positive steps to restore clients confidence in their Critical Illness Cover:

• Friends Provident pioneered the stance that the Association of British Insurer’s initiative adopted for non-disclosure. This aimed to help clients who have innocently disclosed errors on their application, so Friends Provident could pay a proportionate or even sometimes the full amount of their claim;
• Friends Provident’s comprehensive and user-friendly application forms, intelligent online eSelect system and the underwriting support they provide have all contributed to falling rates of non-disclosure;
• Defintions have been made clearer.  Clients therefore have a better understanding of the product they are taking up; and
• Recent reprices have made Critical Illness Cover more affordable, which makes it even more relevant in these financially difficult times.

Friends Provident believe that these changes, combined with more communication about the benefits of the product, are fundamental steps forward to restore  clients confidence in this product. 

Sources:
1  www.heartforum.org.uk
2  www.statistics.gov.uk

Total permanent disability

There are a number of definitions used for Total Permanent Disability. For example, “total disability” may be measured by
assessing the person’s ability to perform certain of the following:

The insured person’s “own occupation”.
“Suited occupations”.
“Any occupation” whatsoever.
A number of specified activities – for example, activities of daily living or functional ability tests.

Change of occupation

Depending on whether the definition used relies on the occupation of the person covered, this occupation may be disclosed
and underwritten at the outset of the policy. Where this applies, subsequent changes of occupation may vary the initial underwriting
assessment. Insurers normally deal with this issue in one or a combination of the following ways:

Notification is required.

The new occupation is re-underwritten and the terms of the contract are adjusted if necessary. The customer’s
ability to perform an occupation (or one that is suited, depending on the definition) is judged against the occupation most
recently notified (if all changes have been notified as required).

Notification is not required.

The customer’s ability to perform an occupation (or one that is suited, depending on the definition) is judged against the occupation
being followed immediately before the claim. In this case, the insurer accepts the risk of changes in occupation.

Alternatively, the insurer judges the claim against the occupation declared in the application, regardless of subsequent changes.

Guidelines

Insurers are free to use any one or more definitions of disability they wish, including but not limited to those shown in 6.1 above.

Insurers should make it clear in their product information which procedure is adopted in relation to change of occupation together with
the potential consequences.

If insurers require notification of changes in occupation, they should periodically remind the policyholder.

Clearly there is some room for interpretation with regards to the total and permanent disability defintions within a critical illness policy so it’s worth checking your policy to see exactly what you are covered for.  Many people think that by having a critical illness policy with ‘any occupation’ for the total and permanent disability option is better than having ‘own occupation.’  This is not the case as most people tend to stay within their occupation for life.  A policy with an ‘own occupation’ definition should pay out if you are unable to perform the day to day duties of that occupation.  A policy that has an ‘any occupation’ definition however, might not pay out in that the insurer could argue that although you are unable to perform the duties of your own occupation, you should be able to perform the duties of other occupations.

These definitions are openly available from the ABI or life assurance companies direct but just in case we thought that we would break them down for you into a few bite size chunks.

Alzheimer’s disease [before age x] – resulting in permanent symptoms

A definite diagnosis of Alzheimer’s disease[before age x] by a Consultant Neurologist,Psychiatrist or Geriatrician. There must be
permanent clinical loss of the ability to do all of the following:

• remember;
• reason; and
• perceive, understand, express and giveeffect to ideas.

For the above definition, the following are not covered:

• Other types of dementia.

Aorta graft surgery – for disease

The undergoing of surgery for disease to the aorta with excision and surgical replacement of a portion of the diseased aorta with a graft.  The term aorta includes the thoracic and abdominal aorta but not its branches.

For the above definition, the following are not covered:

• Any other surgical procedure, for example the insertion of stents or endovascular repair.
• Surgery following traumatic injury to the aorta.

Benign brain tumour – resulting in permanent symptoms

A non-malignant tumour or cyst in the brain, cranial nerves or meninges within the skull,resulting in permanent neurological deficit with persisting clinical symptoms.

For the above definition, the following are not covered:

• Tumours in the pituitary gland.
• Angiomas.

Blindness – permanent and irreversible

Permanent and irreversible loss of sight to the extent that even when tested with the use of visual aids, vision is measured at 3/60 or worse in the better eye using a Snellen eye chart

Cancer – excluding less advanced cases

Any malignant tumour positively diagnosed with histological confirmation and characterised by the uncontrolled growth of
malignant cells and invasion of tissue. The term malignant tumour includes leukaemia, lymphoma and sarcoma.
For the above definition, the following are not covered:

• All cancers which are histologically classified as any of the following:
– pre-malignant;
– non-invasive;
– cancer in situ;
– having either borderline malignancy;
or
– having low malignant potential.

• All tumours of the prostate unless histologically classified as having a Gleason score greater than 6 or having
progressed to at least clinical TNM classification T2N0M0.

• Chronic lymphocytic leukaemia unless histologically classified as having progressed to at least Binet Stage A.

• Any skin cancer other than malignant melanoma that has been histologically classified as having caused invasion
beyond the epidermis (outer layer of skin).