Compare Life Insurance

Very few people are insured against severe illnesses even though it may strike unexpectedly. Standard Life, the income protection provider, has carried out studies that shows only 5.2 per cent of the country’s work force possess critical illness cover, even though they will obtain a lump sum if they have  a heart attack, stroke or suffer from cancer.

20 per cent of the population consider the cover to be too costly, the survey reveals, which which accounts for the low take up.

Potential clients are also baffled by the phrasing of policies and the disparity between permanent medical cover and critical illness insurance.

An operational party put together by the AIB, is presently reviewing the phraseology of policies. The situation might become much more confusing if the  operational party choose to lessen the amount of conditions defined as a critical illness.

UnNum Provident have launched a new product called Elixia 123, which it states cuts the cost of critical illness insurance by about 30 per cent and sometimes by as much as 48 per cent.

This will be achieved by permitting clients to pick the illnesses for which they require cover. There are three groups of risk. Category one. Heart attacks, strokes and invasive cancer. The plan will only pay out if the illness leads to major life style changes or is life threatening.

Group two. illnessesthat dramatically affect life style but do not have much impact on life expectancy. Motor neurone disease, Alzheimer’s and blindness  are included in this category.

Group three. Conditions

Critical illness insurance is not that pricey so it is advisable to opt for a comprehensive insurance, which will give you complete protection.

Susan Pilks, the distribution development manager at PruHealth, is worried about how the terms are defined. She emphasises that clients must comprehend accurately what they are purchasing. Such as, when is an illness defined as major? The 1st and the 3rd categories need elaboration before purchasing cover as there is not much difference between them in her view. Difficulties can occur later if the customer has not fully comprehended the terms of the policy when they put pen to paper, says Nye Jones.