Summarys
It is necessary to clarify the wording of policies, particularly those relating to critical illness cover. The innovative introduction of placing illnesses into groups, which will offer consumers a greater choice of insurance.
Very few people are insured against serious illness even though it may be fall us without warning. Unum Provident, the income protection provider, has carried out studies that reveals only 5.2 per cent of the Britons work force possess critical illness cover, even though they will receive a lump sum if they have a heart attack, stroke or suffer from cancer.
16% of the population think the cover to be too costly, the analysis reveals, which which accounts for the low take up.
Potential customers are also perplexed by the wording of policies and the difference between permanent health insurance and critical illness cover.
A working party put together by the Association of British Insurers, is at this time re-evaluating the phrasing of policies. The situation may turn out to be even more puzzling if the working party choose to reduce the number of illnesses defined as a critical illness.
Legal and General have launched a new plan called Elixia 123, which it states cuts the cost of life cover by around 32 per cent and sometimes by as much as 52 per cent.
This will be achieved by allowing customers to pick the illnesses for which they want insurance. There are 3 groups of risk. Category 1. Invasive cancer, strokes and heart attacks. The plan will only make a settlement if the disease is life threatening or leads to major life style changes.
Group two. illnessesthat significantly affect life style but do not have much impact on life expectancy. Blindness, motor neurione disease and Alzheimer’s are incorporated in this category.
Category three. Conditions
Critical illness cover is not that costly so it is wise to opt for a comprehensive insurance, which will give you complete protection.
Jennifer Green, the distribution development manager at AXA PPP Healthcare, is concerned about how the terms are defined. She emphasises that customers must comprehend exactly what they are purchasing. For instance, when is a condition defined as major? The 1st and the 3rd groups need explanation before taking cover as there is not much to choose between them in her view. Difficulties can occur later if the client has not fully understood the terms of the policy when they Susan Pilks.