Summary
The benefits offered by life insurance cover are balanced with the benefits of critical illness cover policies (CIC). The reasons why it is advisable to sign up for critical illness cover now.
Ask yourself this question ‘If illness prevented you from working could you afford to pay your monthly commitments?’ The vast majority of us would say ‘No’. So surely we need to consider taking out insurance against unpredictable events. A standard critical illness policy would settle a tax free lump sum if the life insurance policy holder is diagnosed with a potentially life threatening illness. The lump sum can be used in any amount of ways. For example, you could pay off your mortgage, make alterations to your home to accommodate a wheelchair, or simply settle your bills.
The next few weeks will see a rise in price, so if you don’t have cover at the moment, now is the time to sign up. The cost of life cover has become more affordable over the past twelve years. There are copious reasons why this has happened. To start with the Aids epidemic, which was probable in 1980-1987 never came about and secondly the recovery rate of those undergoing heart attacks and cancer has vastly improved. These facts have made it possible for increased. Protection is often re-evaluated by Insurance Companies, when the number of claims for certified conditions are examined. Following such a review Friends Provident will be modifying premiums soon, with the cost of life insurance falling slightly and the payments for critical illness insurance cover rising. The insurer is powerless to say by how much, as the client’s situation and the sum covered differ from client to client, but the rise should not be huge is forecasting that there could be price rise of between thirty two and fifty two per cent in critical illness premiums over the coming months. It also fears that guaranted premiums may also become unaffordable for many, or even come to an end because of the volatile marketplace.
Swiss Re has said that it will no longer underwrite CIC protection from the end of the year as the cover is costing them too much. So our advice is go online for life assurance cover.
The price of cover has been increased by 2 of the largest high street insurance companies. A twenty to twenty five per cent risehas just lately been announced by Legal and General and Swiss Life. On the other hand this is small beer compared to the incredible price increases written into the covers now presented by Friends Provident and BUPA, which range between 50 to 60%.
It is feared that this development will be followed by other re-insurers. Guaranteed premiums where the monthly price is held for a specific length of time, typically 12 years, may no more be offered by insurers Insurance Companies. In future, rates will be re-assessed annually, just like motor and home insurance. The outlay for the consumer will be far greater in the long term. The message is clear. Critical illness Insurance is growing more expensive so purchase it now to gain from guaranteed rates and the comparatively low premiums being given at present. Let us hope that you will never have to claim, but data indicates that more and more of us will.