Critical illness protection - forgotten part of life insurance cover?
6th October, 2014
Millions of British families are without the financial safety net that critical illness cover provides should one or both parents become seriously ill and are unable to work.
A new study conducted by insurance company Legal & General has revealed that 20% of UK families now have life insurance cover that pays out a lump sum if both parents die, but only one third of families that took out protection in 2013 purchased the 'sister product' of critical illness insurance, which covers conditions such as heart attacks, cancer and strokes. Millions of British families are without the financial safety net that critical illness cover provides should one or both parents become seriously ill and are unable to work.
Life insurance is most often purchased between the ages of 25 and 70 and official statistics show that nearly 109,000 people die each year during this age bracket. However, three times this number are diagnosed with cancer annually and the illness can strike at any age. According to Cancer Research UK more than 33% of people will be hit by cancer, and 150,000 people will suffer strokes according to the British Heart Foundation.
Protection insurance experts explain that many people buy life insurance because it is cheap, but that anyone with a family and debts should also consider critical illness cover, as people are living longer on average and there is a strong likelihood that not being able to work will precede retirement. Consumers are urged to compare life insurance quotes and do their research prior to choosing a policy and are advised that so-called tandem policies, whereby critical illness cover is sold alongside life protection, are usually the most cost effective.