The Growing Popularity and Importance of Critical Illness Cover
The Growing Popularity and Importance of Critical Illness Cover
Critical illness cover is one of the most popular and fastest
growing insurance products available in the UK. This is shown by
the fact that there was a 31% increase in the number of critical
illness insurance policies sold between 2001 and 2003.
What is Critical Illness Cover
Critical illness insurance pays out a tax free lump sum to
policy holders if they are diagnosed with a serious illness
which is covered by their critical illness plan. Examples of
serious illnesses covered by critical illness insurance policies
include; strokes, heart attacks and cancer.
Policyholders can use this money in any way that they wish such
as for medical care or to cover living costs that they cannot
otherwise meet owing to loss of income.
Who Should Consider Critical Illness Cover
Most people do not like to contemplate the fact that they might
become seriously ill and assume that it will not happen to them.
However, statistics demonstrate how widespread serious illness
is and that we should face the fact that we might suffer from it
at some point.
For example, 100,000 people in the UK have strokes each year and
almost 8,000 of them are under 55 years old. Of these, a third
die within twelve months and another third, over spend the rest
of their lives disabled.
Furthermore, in the UK, 300,000 people have heart attacks each
year and 80% of sufferers aged between 45 and 65 survive. Whilst
over 30,000 women are diagnosed with breast cancer annually many
of whom survive for a number of years but continue to need
medical treatment.
Benefits of Critical Illness Cover
Given that so many people who are diagnosed with serious
illnesses go on to survive but need ongoing medical treatment
and often cannot continue working, critical illness insurance
can provide a very welcome financial safety net.