Critical Illness Cover provided by Norwich Union UK

This is from the Norwich Union Page on critcal illness - could be worth checking out.

Critical Illness Cover provided by Norwich Union UK: "Why do I need it?
Should you be unfortunate enough to suffer a critical illness, the last thing you'll want to be worrying about is money. Advances in medical science mean that the chances of surviving a critical illness are improving all the time. The cash sum you'd receive from a critical illness plan could help you through the recovery period.
You may have to reduce your working hours, need to pay for medical care or have to adapt your house to make your day-to-day life easier. A critical illness plan could help all of this and more."

They are one of the larger providers in the UK market.

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Life and critical illness

This is the hompage of one of the larger UK providers for critical illness cover,

Life and critical illness homepage: "Life and critical illness insurance isn't the most cheerful thing to think about; protecting those you care for, should the worst happen. It's not all bad news though - we've put together a fantastic deal that's bound to put a smile on your face."

Check em out

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Payment Protection Overload

Now that we have some idea just what critical illness cover is, lets delve a bit deeper into health cover and how it fits into your other financial protection. Here is a great article from Rachel Lane. I think I have posted from her before, anyway it's a good read - enjoy.

Are You Suffering From Payment Protection Overload? - By: Rachel Lane,
Critical illness insurance:

Critical illness insurance will cover you in the event of a serious illness such as cancer, coronary artery by-pass surgery, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke. Additional conditions covered by this insurance can include aorta graft surgery, benign brain tumour, blindness, coma, deafness, heart valve replacement or repair, loss of limbs, loss of speech, motor neurone disease, paralysis/paraplegia, Parkinson’s disease, terminal illness and third degree burns. Not all insurance companies will necessarily cover all of these illnesses, whilst some insurance companies will cover more; it is always worth reading the terms and conditions before you sign anything.

Critical illness insurance policies typically offer a tax-free lump sum if you are diagnosed with one of the above illnesses and meet the conditions outlined in the policy contract. The lump sum is most often used to cover the remainder of the mortgage, although can be spent on home alterations or medical care etc.

Life insurance:

Life insurance is usually taken out if your family or partner is financially dependent on your income. Life insurance can also be purchased as life assurance and in this form, can offer a method of protection cover and savings. However, most people simply use it as a form of financial protection for their mortgage and therefore their family. There are three main types of life insurance: term insurance, whole life insurance and endowment insurance. More information can be found on these forms of life insurance on the Association of British Insurers’ website, listed in the resources section of this article.

Mortgage life insurance:

Mortgage life insurance is essentially the same as a decreasing (lump-sum) term life insurance policy and is designed to pay out a lump sum upon the death of the policy holder, should it occur during the term of the mortgage. The size of the lump sum will decrease over the term of the life insurance policy, in the line with the outstanding mortgage repayments. E.g. As you pay off your mortgage, the amount of cover will decrease as the need is less significant.

Mortgage protection:

Mortgage protection, also called mortgage payment protection, is a type of insurance that can help protect mortgage payments and associated household costs in the event of unemployment, illness or an accident. Through mortgage payment protection, you can insure your monthly mortgage payment, monthly life premiums and the monthly cost of your buildings and content insurance. Typical mortgage protection cover could include:

* Unemployment and disability insurance cover
* Accident or sickness
* Unemployment only insurance cover
* Disability only insurance cover

Loan payment protection:

Loan payment protection policies are designed to protect the repayments to any loans you may have taken out. They work on a similar basis to mortgage payment protection, but for a wider scope of borrowing. Premiums for loan payment may be greater than those for mortgage protection.

Income protection:

In the event of unemployment, sickness or an accident, income protection insurance offers a limited income. Do make sure you understand the terms of the policy however, as the income that you received through cover may be significantly less than the income you receive through employment.

Private medical insurance:

Private medical insurance is a policy which will provide financial cover for medical treatment in the event of an acute condition. According to the Association of British Insurers, the majority of insurers define an acute condition as “a disease, illness or injury that is likely to respond quickly to treatment which aims to return you to the state of health you were in, immediately before suffering the disease, illness or injury, or which leads to your full recovery.”

Private medical insurance provides reassurance for people who know that treatment is available promptly should they become ill or injured.

Rachel writes for the personal finance blog Cashzilla – personalfinanosaurus – licensed to roar. Rachel spends her not-so-free time researching and writing personal finance articles, but she gets through it with Smarties and Fruit Pastilles. To read more about Rachel and Cashzilla visit http://www.cashzilla.co.uk>

I will be posting more soon- so stay tuned !!

blogmaster

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Critical Illness Cover UK

Breast Cancer

This article in the Liverpool Echo, talks about critical illness cover in particular relation to breast cancer.

Prepare yourself just in case

ic Liverpool - Southport,England,UK... Critical Illness insurance - this pays benefits on the diagnosis of certain specified critical illnesses. All policies should cover seven core conditions ...

Hope this is of use.

Blogmaster

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Critical Illness Cover provided by Norwich Union UK

Norwich Union as you probably know are one of the larger insurance providers in the UK - here is an excerpt from thier critical illness page

Critical Illness Cover provided by Norwich Union UK: "What is Critical Illness Cover?

Critical Illness Cover is an insurance plan that pays out a guaranteed cash sum if you're diagnosed as suffering from a specified critical illness, within the term of the plan. The plan has no cash-in value at any time.
Why do I need it?

Should you be unfortunate enough to suffer a critical illness, the last thing you'll want to be worrying about is money. Advances in medical science mean that the chances of surviving a critical illness are improving all the time. The cash sum you'd receive from a critical illness plan could help you through the recovery period."

Well worth a vist,

Blogmaster

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Business takes out critical illness cover.

Here is an interesting story, it relates to a company in the City I work in Stoke On Trent. One of the pottery firms has taken out critical illness cover on one if its employees who works as a designer. Another example of a company taking out critical illness cover on an employee.

Guard against mortal blows to your businessScotsman - United Kingdom... So why are firms less likely to address their life cover and critical illness needs? Known as "key person insurance", its aim is to compensate a business for ...

More soon

Blogmaster

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Living longer with a critical illness.

Living longer, that's what a lot of us do nowadays, the advances in medical care mean that we are living long past the time when our great-grandparents could expect to live. As you would expect the insurance industry has stepped in to take care of that gap - it's called critical illness insurance. Here is some more information......

Living longer with critical illness: a critical illness policy can bridge the financial gap created when you survive a major illness.

At the beginning of the previous century, a 20-year-old man could have expected to live to the ripe old age of 62, on average. A 20-year-old woman could have expected to live to 63, on average. But with advances in medical science, the Society of Actuaries now tells us a man who turns 20 in the year 2003 should plan to live to be around 74; and a woman to age 81.
In fact, as we live longer the probability of having a critical illness and surviving increases dramatically. Dr. Christian Barnard, the famous heart transplant surgeon from South Africa, witnessed financial disaster in the lives of people he had saved through transplant surgery. He was so moved and impacted by the financial catastrophes that he witnessed as people lived in a disabled state, he helped to pioneer and promote "critical illness" insurance. This kind of coverage is very common in South Africa, Australia and the United Kingdom. Since it is newer to Canada, it is worth examining.

Critical illness insurance pays a lump sum on the diagnosis of certain well-defined conditions or illnesses. If you suffer a heart attack, stroke or cancer, for example, and you survive 30 days following the diagnosis or surgery, you could receive a lump sum of one, two or three hundred thousand dollars even in the event of a full recovery. Critical illness insurance is not designed to replace or diminish the need for long-term disability insurance, but it does give you a lump sum dollar amount paid up front in cash to help you ease any financial burdens incurred through your condition.

The lump sum payment could be used to pay off debts or spend less time working and more time getting better. It also allows you to spend money on treatment that may be required as a result of your initial critical illness and to improve your living conditions. Unlike long-term disability, which usually requires ongoing medical treatment and proof of a continued disability, there is no 'means' test for critical illness.

One in three people will develop some life-threatening cancer, one in four will contract heart disease before they retire and one in 20 risk the chance of having a stroke before age 70. With each medical breakthrough, more people survive, but live in a disabled state. For cancer patients, it is common to live in remission for many years. For many people, a heart attack is a warning sign to take life a little easier. The critical illness policy can bridge the gap created by the change in lifestyle the illness causes. When a critical illness strikes, there is generally a need for an immediate and urgent cash infusion to cover many one-time expenses. Many critical illness victims do make a full recovery, but for most patients the recovery is lengthy and expensive.

In the event of a critical illness such as the following, the whole amount of benefit would be paid to you in one tax-free lump sum:

Alzheimer's disease
Kidney failure
Major surgery
Loss of speech
Blindness
Major burns
Cancer
Major organ transplant
Coma
Multiple sclerosis
Bypass
Paralysis
Deafness
Parkinson's Disease
Heart attack
Valve replacement

The complete definitions of these conditions appear in the policy contract.
Since being first introduced, critical illness plans have become more sophisticated.
A refund of premium option allows for all of your deposits to be refunded in 10 years from your date of issue if you have experienced no claims. Critical Illness fills a missing need in most people's financial security portfolio.

Chris Cahill, B.A., C.F.P., C.L.U., Ch.F.C., is President of Financial Strategies Group, a broadcaster, a weekly columnist and co-author of Harvesting Your Wealth.

Do check the policy, as with all insurance.

That's all for today,

Blogmaster.

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Model Definitions for Critical Illness Conditions

If your looking for some solid definitions of critical illness cover, take a look at this website below. It is the ABI - Association of British insurers.

Here is an excerpt.

Introduction

The following model definitions are extracted from the ABI's Statement of Best Practice for Critical Illness Cover (May 2002). Each model definition represents a minimum standard of cover that ABI members selling critical illness insurance must offer, if the policy covers that condition (all ABI members must cover at least heart attack, cancer and stroke).

And here is the link...

http://www.abi.org.uk/Display/default.asp?Menu_ID=946&Menu_All=1,946,0&Child_ID=170

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CRITICAL ILLNESS LIFE INSURANCE

Critical Illness Cover has predominantly been a cover that has really taken off in the UK and Canada. This is an article about the arrival of critical illness cover to the american market.

CRITICAL ILLNESS LIFE INSURANCE
By Gordon Gladstone

This newest insurance product that is making its way across the U.S. is ideal for brokers to sustain sales revenue with the aftermath of Triple X causing term life sales to be sluggish at best. The Model (issued either as a rider or as a stand-alone policy) is peaking the interest of consumers. Is it too good to be true? An insurance product that is truly consumer friendly, paying benefits to the living - the survivor - the policy owner that wants to decide how insurance benefits are used! It is definitely coverage that consumers will be adding to their insurance portfolio. Will you be marketing the policy when your customer asks? As most of us know, Critical Illness coverage began in South Africa in 1981. At the time, a gap in insurance coverage was recognized and the first accelerated death benefit policy was developed. This policy provided "living benefits" for conditions such as cancer, stroke, and heart attack. Critical Illness coverage was expanded and began to be marketed in the United Kingdom in 1985. Sales were slow until the early 1990's when the market exploded. Accelerated benefit policies entered the US market in the late 1980's when a major insurance carrier began accelerating a policy death benefit when the covered insured was diagnosed as terminally ill - or having a life expectancy of less than 12 months. In 1988 an interest sensitive whole life policy integrated Critical Illness benefits accelerating 25% of the face amount for a covered Critical Illness. Critical Illness coverage has developed over time in Canadian and US insurance carriers with group, individual, health and life based products. Policies are similar in today's market - typically covering Critical Illness such as heart attack, stroke, paralysis, renal failure, life-threatening Cancer, Alzheimer's disease, and total disability. During a recent national meeting of the Actuarial Society, standing-room only crowds gathered to discuss pricing, statistics and results of study groups regarding Critical Illness policies. Over the coming months the number of companies offering a Critical Illness policy will likely double and perhaps triple.

THE CRITICAL DIFFERENCE

Why is Critical Illness coverage so different and so important? Today's medical technology has progressed to a stage where many Critical Illnesses no longer result in death. Increasingly high numbers of survivors of heart attack, stroke, and cancer are populating the US, though many survivors suffer greatly from the financial crisis due to the high cost of non-medical expenses such as home modification, extended therapies, travel, family routine changes, loss of routine income, etc. The Ability to receive the benefit of a life insurance policy as a living benefit gives a policy holder greater control over financial survival. Medical statistics are enlightening: In 1996, 1.5 million people in the US filed for personal bankruptcy. The most common reason given for financial failure was not compulsive spending with credit cards - it was personal illness!

Each year 1.5 million Americans suffer a heart attack, 75,000 are under the age of 40, nearly 50% survive three years or more. Americans suffer 400,000 strokes each year; 90% survive, many with partial or total disability. In the US 3,000 people are diagnosed with life-threatening cancer each day, 40% are still alive after five years. Six months of chemotherapy can cost more than $40,000 and many cancer treatments can range from $100,000 to $250,000.

Critical Illness coverage in the US begins a revolution of "new" living insurance policies that will cause consumers to look at insurance coverage in a new and different way. No longer is it necessary to find the lowest price term, when customers realize they can have life insurance and living insurance for one low price. The social ramifications of Critical Illness coverage can be significant, helping individuals provide real financial security to their family should a Critical Illness occur - if they survive or not. Our industry is one of service. Finally with the development of Critical Illness life insurance, we are able to service consumers with the best of "all insurance worlds" benefits if the insured lives or dies.

CRITICAL MARKETS

The markets for Critical Illness policies are limitless but to address some specific segments consider the following:

The high-income, head of the family individual with a comprehensive insurance portfolio that includes "non-can" DI, cash value life insurance, and a variable annuity. Does a CI policy complement this portfolio? Certainly the receipt of a large lump sum benefit might reassure the insured that cash values of the life insurance and the annuity would not need to be invaded should a Critical Illness threaten the normal standard of living for this type of family. The lump sum would be beneficial when the elimination period of the DI program causes benefit payments to be delayed for 90 - 180 days or more. The need to pursue "new or experimental" medical procedures could be funded by this same cash payment. The CI policy is the perfect 'partner' policy to existing coverages.

What about the 50-ish couple that isn't quite ready to buy long-term care? If they could purchase $100,000 benefit for less than $100 (each) per month, wouldn't they be comforted to know a lump sum benefit would be payable in case they suffer a heart attack or stroke. Financing a long stay in a facility that rehabilitates stroke or heart attack victims could be funded by the CI policy benefit.

Business owners with a buy-sell agreement funded in the past may want to upgrade due to the growth and success of the business, with CI coverage. Additionally, business owners with a key person to insure can also benefit from CI. The lump sum payment upon diagnosis of a heart attack or stroke can certainly buy the company time - time to see if the key person recovers and can return to work, time to find a replacement, time to make tough decisions.

CI coverage can be ideal for entrepreneurs who work from home such as computer programmers, freelance writers or the professional who is taking time from a career to raise children or care for an elderly parent. This segment of the population is unable to purchase adequate disability income yet has a tremendous need. With a large segment of this market being women, consider recent medical statistics that should cause women to take notice:

o Cardiovascular disease ranks first among all disease categories in hospital discharges for women.
o Of all female deaths in America, 44.4% occur from cardiovascular or coronary heart disease and stroke.
o Coronary heart disease claims the lives of 234,088 females annually compared with about 43,090 lives from breast cancer and 61,700 from lung cancer.
o In 1996 females accounted for 60.9% of all strokes.
o After menopause, women are more likely to have a heart attack than are men.

When marketing CI with a "life chassis" the cost for women is lower, yet the number of policy holders for all types of insurance including CI is lower for females than for males.

Naturally, offering CI coverage at the work-site either as a rider, group coverage or a voluntary supplemental benefit is an important segment to pursue. Reaching rank-and-file employees at the workplace provides these consumers the opportunity to purchase valuable, (hopefully) portable coverage. Employees with a good LTD program easily recognize the benefit of a lump sum payment to eliminate or reduce debt allowing the family to maintain their standard of living even though the DI benefit may equal a little more than half their normal income. Coverage tied to mortgage amounts can also be attractive; realizing that the mortgage could be eliminated in the event of heart attack, stroke or cancer can be very appealing.

The concept of a policyholder having control over the insurance benefits that they purchase is extremely tempting. And though many don't want to face their own mortality, most recognize the fact that they could suffer a heart attack or stroke. Many consumers have had family members, friends or acquaintances that have survived a life threatening Critical Illness. The realization that the policy benefit will be paid upon diagnosis of a covered condition is a concept that appeals to the general public.

As more and more companies embrace the concept of Critical Illness coverage and as product designs evolve, the consumer and broker are destined to be the winners. It is likely that every product development committee at every insurance company in the US will consider a Critical Illness aspect to the design of all life insurance products in the future. And, with medical technology continuing to increase the population of Critical Illness survivors, brokers can't avoid being energized by the prospect of making CI coverage an important part of every insurance portfolio.

As insurance professionals we recognize our responsibility to help consumers assess risk and then purchase products that can best protect, reduce or eliminate those risks. There is no doubt that this new category of insurance coverage can convert even the greatest skeptics and relieve the considerable financial burden that so often is associated with surviving a critical or life-threatening illness.

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What is Critical Illness?

This is an article from a canadian, but still has value for the UK critical illness cover market. The cover is arranged in a similar manner, with the payout being in a lump sum too. Have a read.


What is Critical Illness?
By Ivon T. Hughes

Critical Illness (CI) is a relatively new coverage in Canada that guarantees the payment of a lump sum benefit between $50,000 to $2,000,000 if you are stricken by a critical illness such as cancer or a heart attack. CI provides the financial resources to fill the gap that may be created between health insurance plans and other expenditures you may have or help replace lost income. This type of support can help tremendously in maintaining your quality of life and financial security during the recovery period and help you face your new challenges.

Government health plans and group insurance benefits are limited to basic medical and hospital care in Canada and Disability income coverage pays a monthly income only if you can't work. For Critical Illness insurance, for example, if you suffer a heart attack and are able to return to work, CI still pays.

The maximum coverage amount available varies depending upon the insurance company issuing the plan. Each company exactly defines the critical illnesses they are covering in their policy contracts. Over 20 different illnesses may be covered extending cancer, heart attack and stroke to organ transplants, deafness and more.

You must survive a critical illness for a fixed period of time to receive the coverage amount, usually 30 days. In other words, if you suffered a heart attack, you must live at least that long to receive this payment.

If you suffer a critical illness, you do not receive the coverage amount as a monthly benefit. Instead, payment is made in full, as a lump sum amount. There are no conditions as to how you use the funds. The money unconditionally belongs to you. You are the one who decides how it will be spent.

We can help you secure your financial future by ensuring you have the money to keep your home and lifestyle should you be stricken with a Critical Illnesses covered under this plan. Contact us for more information or run your own quote at our website.

Ivon T. Hughes president of The Hughes Trustco Group has been in business for 30 years. Canadians & Americans can get a FREE Quote TODAY! www.hughestrustco.com

That's all for today.

MB

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I've got Life Insurance - why would I need Critical Illness Cover?

I've got Life Insurance - why would I need Critical Illness Cover?

If you have life insurance then you know that a lump sum of money will be paid to the beneficiaries of your policy should you suddenly pass away. You will probably have this policy for peace of mind to reduce the financial burden you death might put on any dependents you have, and assist them in settling your estate.

Statistically however, you are six times more likely to suffer from a critical illness than die before you reach the age of 65. Advancements in the field of medicine mean that today we are now surviving the illnesses that might have meant an early grave for previous generations. In this situation your life insurance is unlikely to be able to assist you, but an alternative is available; you might consider obtaining critical illness cover.

Critical Illness Insurance will cover you if you are diagnosed with an illness listed on your policy and, as with life insurance, pay out a tax-free lump sum. This can help with any financial difficulties that sudden diagnosis of a serious illness might bring you. If you were to be diagnosed with a serious illness today and were unable to continue working you may face several financial problems at once; you may have a mortgage payments to make, you might run your own business and need to arrange cover or you illness may require additional medical treatment not covered by your standard health insurance policy.

A standard critical illness insurance policy will cover you for the following illnesses:-
· Cancer
· Coronary artery by-pass surgery
· Heart attack
· Kidney failure
· Major organ transplant
· Multiple Sclerosis· Stroke

However, you may also cover additional critical illnesses under your policy, you will need to check with the individual insurance provider as to which other illnesses they may cover.
Do be aware though that there are fairly strict definitions as to what constitutes any one particular critical illness. For example if you were to suffer from Angina, this would not come under the Heart Attack section of your policy, even though it is a serious heart condition. In addition to this you will normally need to survive your critical illness for at least 28 days from diagnosis in order for your policy to pay out. There are further exclusions to your policy too, for example you cannot reasonably refuse medical treatment that leads to the development of a critical illness.

Obtaining critical illness cover is a fairly straightforward process you will need to complete an application form, and probably undertake a medical assessment. Your premium will depend on your health status at the time of application along with your family medical history. If you are a smoker you will definiately pay higer premiums. It does pay to shop around for your cover, some providers will offer additional free coverage for your children or a joint policy may be more cost effective than individual policies.

© Mike Bromley 2005

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Critical Illness Cover Uncovered by David Miles

This article I found on the www is applicable to the UK and any other countries that provide critical illness cover.

Critical Illness Cover Uncovered by David Miles

It is a sad fact that many of us will know someone who has suffered from a critical illness. Despite medical advances, critical illness is still all too common. Critical illness conditions include such things as cancer, heart attacks, strokes, multiple sclerosis, leukaemia, and total permanent disability.

Being diagnosed with a critical illness doesn't only spell emotional and physical turmoil. It can also mean financial disaster. If you are unable to work due to a critical illness, or if you have to give up work to look after a child with a serious medical condition, you could quickly find yourself struggling to meet your financial commitments such as the mortgage and other regular bills. And all this at a time when you may be having to find additional money to pay for medical treatment or the costs of ongoing medical care.

With little support available from the State - less than £60 per week if qualify for Disability Living Allowance and just over £70 per week if you qualify for long-term Incapacity Benefit - you could soon find yourself in serious financial trouble.
Fortunately, there are steps you can take to help protect yourself from the financial implications of suffering from a critical illness. Whilst the doctors get on with their job of looking after your health, critical illness insurance can help you avoid worrying about money and leave you free to concentrate on getting better.

Critical illness insurance provides you with a substantial tax-free cash lump sum if you are diagnosed with a serious illness. Different policies cover different ranges of medical conditions, but the one thing they all have in common is that they will pay you your chosen level of benefit as a tax-free lump sum in the event of your being diagnosed with one of the insured conditions.
Providing critical illness cover for a sizeable sum is cheaper than you might imagine, and can make a huge difference to your quality of life in the event of a serious illness. For example, once your claim is paid, you could use the money to clear your mortgage or take a holiday to help aid your recovery.

It is easy to argue that anyone who has a mortgage should definitely take out critical illness protection, but the same can apply to anyone who has regular financial commitments that they would find hard to meet in the event of being unable to work following diagnosis of a serious medical condition. In fact, in many ways, critical illness cover is even more important than life insurance, because in this day and age, advances in medical science mean you are more likely to initially survive a critical illness than you are to die from it.

When you suffer a serious illness it can take a long time to recover. You may have to give up work completely to begin with, and it may be a number of years before you are fit enough to return to full time employment. If your critical illness leaves you with a permanent disability you may have to change career, thus leaving you with a lower salary than prior to your illness.
When deciding what level of critical illness cover to opt for, there are a number of factors to take into account. If you were in a position where you were unable to work for a number of years after your illness, then you might need to live off your critical illness benefit for longer than expected. Therefore, it is sensible to try to cover a sum at least four or five times your current annual salary. Remember to take into consideration your mortgage any other outstanding loans and credit card debts when deciding on a level of cover.

All critical illness policies have what is known as a survival period. This is the length of time after you fall ill before your claim can be processed. This is normally in the region of two to four weeks. Then the insurer will need to gather medical evidence and reports from your doctors to ensure the validity of your critical illness claim. This process can take a few weeks depending on the amount of information required. The insurance companies who provide critical illness cover have specialist medical claims staff who will make every effort to get your benefit paid to you as quickly as possible.

In addition to providing critical illness protection for yourself and your partner, it also makes sense to add on cover for your children if you have any. Unfortunately, serious illness amongst children is more common than you might like to think. Historical claims records show that a substantial number of claims are made on children's critical illness insurance, mostly for leukaemia.

You might assume that if one of your children suffered a critical illness, your household finances would be unaffected. After all, they are not wage earners. However, in reality you may want, or need, to give up your full time employment to look after your child. In addition, their illness may give rise to additional costs for medical treatment or nursing care. Money is the last thing you want to be worrying about if one of your children is taken seriously ill.

A large number of critical illness insurers automatically provide cover for children, so it is worth checking this aspect of the policy when deciding which critical illness provider to opt for.
One of the most important things to be aware of when choosing a critical illness protection plan is the list of illnesses and conditions covered by the policy, as this varies from one insurance provider to another.

All providers cover a certain range of core conditions, such as cancer, stroke, heart attack, and multiple sclerosis. Other companies may provide cover for additional conditions such as loss of sight, loss of limb, or benign tumours. Statistics show, however, that the majority of claims are for one of the core conditions, which every insurer has to cover.

Critical illness insurance can be bought with either guaranteed rate premiums or reviewable rate premiums. The former are normally more expensive, but the premiums are guaranteed to remain the same throughout the life of the policy. With reviewable rates, the premiums are not guaranteed and so you may have to pay more or less per month (almost certainly more!) as the years go by.

Critical illness policies stay in force for a fixed period. The period of cover you select is known as the term. A short-term policy might run for perhaps ten years. Or you might want a longer term policy of twenty-five years to coincide with your mortgage. It is important to remember that your cover will end completely as soon as the term is finished.

The other two things which will cause your policy to terminate are if you die or if you make a critical illness claim. Once you have claimed for a serious illness, it can be difficult to get new cover, as you are seen by insurers as a higher risk. Some companies offer a critical illness buy-back option, meaning that if you do claim on your critical illness policy you can still take out cover again with that same insurer. A buy-back facility will increase your monthly premiums, but for the sake of what may only be a few pounds per month, it is well worth considering from the outset.

As you will see from everything we have said here, critical illness policies can differ in price and provide differing levels of cover and benefits. In addition, some policies cover just critical illnesses, whilst others combine critical illness protection with traditional life assurance.
It is therefore important to take expert independent financial advice before deciding which critical illness policy is right for you.
--
Copyright 2004 David Miles. About the Author
David Miles is the editor of <http://www.thecashclinic.com" target="_blank">TheCashClinic.com, a UK personal finance portal.

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Critical Illness Insurance - Critical Or Ridicule?

This is a great article explaining the ins and outs of Criticall Illness Insurance. Rachel also points out that if you are not covered for a specific illness - you don't get paid. This is so crucial with Critical Illness Cover, I really would reccommend that you cover as many illnesses as you can afford. This applies to whether you live in the UK or not.

Critical Illness Insurance - Critical Or Ridicule? by Rachel Lane

Critical illness cover (CIC) is a type of insurance which provides a significant one-off payment if you are diagnosed with a specified life-threatening condition - specified being the important term, because if your illness isn't in the terms and conditions - you won't get the payment. Over the recent years, critical illness cover has gained in popularity due to lower costs and apparent simplicity.

Critical illness insurance can be sold as part of a mortgage package or additionally as a stand-alone policy. Critical illness cover can also be commonly associated with life insurance, with certain CIC policies paying out either on the diagnosis of a particular illness or on death, but not both, whilst other CIC policies pay out in both events.

When you first purchase the critical illness insurance policy, there might be an option for buy-back insurance, this would permit you to buy additional critical illness cover or life insurance, typically at a minimal cost, after you have made a claim on your existing CIC policy. Such an option is often worth considering , as the survival rates from a critical illness are usually very good and it can be extremely difficult to obtain new cover following a critical illness. Buy-back critical illness cover usually protects against the three major critical illnesses: heart attack, stroke and cancer from which you are most likely to recover, but also risk an attack later in life.
Bear in mind that when you take out life critical illness insurance, there is a standard waiting period between diagnosis and possible payout, from six months to a year for certain conditions, such as total permanent disability. However, if the diagnosis is very transparent, it is possible that the insurer would consider waiving the waiting period.

The maximum payout varies from policy to policy, thought it's not unusual to see capped payouts of £500,000 or £1 million, though cover for higher amounts might be available on request. When the policy is sold as part of a mortgage package, the lump sum is designed to pay off the loan on the home, but with other policies, there may be no restrictions on how you use the money. Suggested uses may encompass covering living expenses whilst you are off work, though the money could additionally pay for private medical treatment, carer services, home improvements, career retraining, help for your dependents and even a holiday or break away.

Nearly all critical illness insurance policies cover seven main conditions: cancer, heart attack, stroke, kidney failure, coronary artery bypass, multiple sclerosis and major organ transplant. Policy exclusions in critical illness insurance may include Alzheimer's or Parkinson's disease if diagnosed after the age of 60. Don't be seduced by long lists of ailments - as other policies may include these but under a broader heading.

It is important to note prior to taking out a policy, that there may be certain exclusions in the insurance contract which may prevent payout due to life choices and circumstances. According to the Association of British Insurers, the most common exclusions include:
* Aviation * Criminal acts * Drug abuse * Failure to follow medical advice * Hazardous sports and pastimes * HIV/AIDS * Living abroad * Self-inflicted injury * War and civil commotion
The consumer organisation estimates that two thirds of the population suffer from a critical illness at some point in their lives. However, whilst the principle of critical illness insurance might be relevant, it is always worth ensuring your policy meets your exact needs, so if the worst happens, you're not caught out by the small print. It's important to shop around for quotes and different policies. Comparison sites such as moneynet and moneysupermarket will allow you to do this.

Rachel lives with her high horse in the Scottish mountains, near Edinburgh. Rachel writes for the personal finance blog Cashzilla: http://www.cashzilla.co.uk

Well thats it for today. As always shop around when you are looking for cover.

MB

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Critical Illness Cover
UK

Critical Illness Cover – What, Why and Where.

What Is Critical Illness Cover ?

Way back when, in 1694 to be precise, the first notion of insuring a persons health was put forward by by Hugh the Elder Chamberlen. Health Insurance developed through the centuries, but essentially it was insuring a persons health against a disablilty. That is, covering the costs of medical treatment for a person severly injured. As we have moved on into the modern world along with the development of many other insurances we now have critical illness cover, a form of insurance that is designed to pay a lump sum when the policy holder is diagnosed with a specific illness.

The list of illness you can obtain cover for is varied, and of course if you develop an illness that you are not covered for then your insurance won't pay out. Some of the conditions you can get cover for are the following.

Alzheimer's disease

Bacterial Meningitis

Blindness
Cancer

Coma

Coronary artery bypass surgery

Deafness

Heart attack

Kidney failure

Loss of limbs

Major organ failure requiring transplant

Multiple Sclerosis

Occupational HIV

Paralysis

Parkinson's disease

Severe burns

Stroke

There are many more condition that can be covered, upon negotiation with your insurance company.

Why might I want Critical Illness Cover?

It is a fact of life that people get seriously ill. And if you do what are the consequences?

If you have a partner and/or a family what does the loss of your income mean?

Do you still have outstanding payments to be made on your mortgage?

Do you run your own business?

Does the illness you have developed require specialist treatment, perhaps not covered by other health plans you might have?

At the end of the day your Critical Illness Cover is there to provide a lump sum to help you through the potential financial difficulties arising from a serious illness.

Where can I get Cover?

S with all types of insurance there are a multitude of providers. Some of the larger insurance companies that deal with all types of cover will undoubtedly be able to give you a quote for cover. But also do not rule out some more of the more specialist insurance providers. The main thing is to check out the full details of your policy, if your family has a history of a particular illness you must make sure your policy covers this, but also do bear in mind that you have to fully disclose your family health history and your insurance premium will reflect this.

Mike Bromley

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Critical Illness Cover
UK

Could critical illness cover in the UK be changing.

Here is an excerpt from a recent article in the Scotsman. But how are things going to change?



Critical illness policies are prepped for surgery

Willie Ewen

MAKING a claim on critical illness insurance cover might not be so straightforward in future, if new insurance industry proposals are implemented.

Cancer, along with heart attack, stroke, coronary artery disease surgery and multiple sclerosis have consistently accounted for more than 90 per cent of all claims since critical illness cover was first introduced in the UK back in 1986.

Last month, the Association of British Insurers (ABI) waved the flag of consultation and views are now being sought from consumer groups, the Financial Services Authority, the Financial Ombudsman, financial advisers and medical experts.

To read more click here http://business.scotsman.com/index.cfm?id=1937282005

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Critical Illness Cover
UK

Critical Illness Cover - General Knowledge

its good to start with a bit of general knowlege on this topic, because this issue is such a hot issue in the UK

General Knowledge - Critical Illness Insurance
By Tyler D King

Critical illness can happen to anyone, and often does. If you are diagnosed with a critical illness, recovery should be your first concern. Having Critical Illness Insurance will allow you to focus on your health, because it can take the stress of worry about money away. Insurance will pay for a large sum of your medical treatments for a critical illness, and many companies have as many as 30 illnesses insured, including cancer, heart attack, stroke and multiple sclerosis. Most insurance companies will allow you to use the money provided for your critical illness any way that you need.

For example, if you decide you want to pay for hospital fees yourself, you can use your insurance money to avoid drawing money out of personal savings, help to pay off debt, allows your partner to take time off work to look after you or any other way you choose. There are different levels of critical illness insurance, and the one you decide on depends on how much you can afford. Having basic coverage will usually cover five or six conditions, while comprehensive coverage will cover all of the illnesses the insurance company has to offer. Comprehensive coverage will cost more, but a good company should provide about 80% coverage, even for basic insurance.

Costs of insurance will also depend on your age, health and other lifestyle factors. The necessity of having critical illness insurance is often higher than people might think. Statistics show that a person is more likely to contract a critical illness than they are to die before the age of 75. A critical illness can drastically change your lifestyle because you may not be in a condition to work as you had before experiencing the illness. Insurance can help you financially during treatment as well as after recovery to help you maintain a good quality of life. Many companies will also financially help out your family in case of your own death.

life insurance resources

Tyler D King

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Critical Illness Cover
UK

Critical illness insurance and life insurance cover

Critical Illness Cover is a handy thing to have. If you become very ill it can give you peace of mind. Here is an article explaining more

Critical illness insurance and life insurance cover for better and for worse. by Rachel Lane

There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to be completely bionic then you could choose all three types of insurance, but if your family finances are more restricted, it might be better to insure yourself with critical illness insurance and life insurance. Critical illness insurance should not be confused with private medical insurance or even income protection insurance and it's important that you do a full evaluation of your needs before you pursue the different insurance options.

The purpose of critical illness cover (CIC) is to fill a gap that is left by traditional life insurance policies, which will only provide a pay-out on the death of the policy holder. CIC provides a tax free lump sum following the diagnosis of one of a number of life-threatening illnesses or certain types of surgery. The sorts of situations usually covered include the diagnosis of cancer, a stroke, a heart attack, the loss of a limb and many other serious disabilities.

Critical illness insurance policies are typically sold to cover mortgage repayments and are often sold alongside a life insurance package to ensure the borrower can repay the loan in all circumstances. It is worth noting that if a combined life insurance and critical illness cover package is taken out, then it would not be unusual for an insurer to pay out for only one of the events. Therefore if the policy holder suffers a critical illness and then dies at a later date, there will only be one pay-out - for the initial illness. It is essential whenever you take out a policy that you make sure it covers all of your needs and those of your family. Don't estimate how much cover you may actually need. You will additionally need to consider the period for which you want critical illness cover, such as a set number of years to cover the mortgage or no fixed period at all, so you can maintain the policy as long as you need it.

The critical illness insurance market has come under increasing pressure in recent years, as the number of claims has soared, survival rates increased and medical science has made it far easier to detect serious conditions much earlier. These factors have prompted some serious questions about the viability of critical illness cover, particularly guaranteed products.

For the majority of people, the most important benefit of critical illness insurance is to protect their mortgage and most mortgage protection policies allow you to include life insurance and critical illness cover. If you already have life insurance in place, you can buy an additional, separate critical illness insurance policy.

Resources:

http://www.abi.org.uk/ The Association of British Insurers

http://www.moneynet.co.uk/insurance/index.shtml Consumer Insurance Comparison Research

http://www.moneynet.co.uk/home-car-travel-insurance-guide/index.shtml Insurance Guide

About Rachel:

Rachel writes for the personal finance blog Cashzilla - personalfinanosaurus - licensed to roar.

Rachel spends her not-so-free time researching and writing personal finance articles, but she gets through it with Smarties and Fruit Pastilles.

To read more about Rachel and Cashzilla visit http://www.cashzilla.co.uk

That''s all for today.

MB

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Critical Illness Cover
UK

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