Think about this question ‘If illness prevented you from working could you afford to pay your monthly commitments?’ The vast majority of us would say ‘No’. So surely we need to consider taking out insurance against the unpredictable happening. Standard cheap critical illness insurance protection would settle a tax free lump sum if the policyholder is diagnosed with a potentially critical illness. The lump sum may be spent in several ways. For example, you could pay off your mortgage, make alterations to your home to accommodate a wheelchair, or simply settle your bills.

The next few months will see a sharp rise in premiums, so if you haven’t got any life insurance cover at the moment, now is the time to sign up. The price of life cover has become more affordable over the past twenty years. There are a number of reasons why this has occurred. Firstly the Aids epidemic, that was expected in 1998-1984 never came about and secondly the recovery rate of those suffering from heart attacks and cancer has radically improved.

Protection insurance is often re-evaluated by Insurance Companies, when the amount of claims for certified conditions are examined. Following such a review AXA will be modifying premiums shortly, with the cost of life insurance coming down slightly and the payments for critical illness insurance cover increasing. The Insurance Company is powerless to say by how much, as the individual’s circumstances and the amount insured for differ from client to client, but the increase should not be large is forecasting that there could be price rise of between thirty two and fifty per cent in critical illness cover premiums in the next few months. It also suspects that guaranted premiums may also become too expensive for some people, or even die away due to the unsound marketplace.

Swiss Re has proclaimed that it will not underwrite critical illness policies from the end of December as the cover is costing them too much.

The price of cover has been increased by 2 of the largest high street insurance companies.  A twenty to twenty five per cent increase has recently been announced by Prudential and Scottish Equitable. On the other hand this is very little compared to the unbelievable price increases written into the policies now presented by BUPA and Friend’s Provident, which range between 50 to 60%.

It is presumed that this development will be followed by other re-insurers. Fixed monthly preiums where the monthly payment is held for a certain length of time, characteristically twelve years, may no more be provided by insurersInsurance Companies.  From now on, paymentswill be reviewed yearly, just like home and motor insurance. The outlay for the consumer will be much larger in the long term. The meaning is clear.

Critical illness insurance cover is getting more pricey so buy it now to gain from guaranteed rates and the comparatively low prices being offered at present. Let us hope that you will never have to claim, but data indicates that a very high proportion of us will.

Bookmark It

Hide Sites

Check up to see whether your employer provides you with accident cover for you? Quite a few firms do without the employee knowing or remembering. Subsequently if you feel the need for this form of insurance cover, it is well worth checking it out. Also remember that accident insurance cover may incorporated in your life insurance cover. Incidentally, life insurance is sometimes called life assurance.

If you do already have life cover and have enough money to increase your insurance portfolio, then it may be beneficial to think about a relatively insignificant extra payment to purchase something akin to an income payment protection cover, which would mean that you’d receive a monthly income whilst off work or even until retirement. the best idea is to get quotations for life insuance online. other quotes for life insurance can be obtained from your local broker.

Income replacement insurance policies have be moulded to provide you with a sum of money each month, whilst you are off work because of an accident or illness. They’re constructed to pay out until your retirement age. There are other insurances which go by the name of Accident and Sickness Insurance, that will pay out for a limited period and some of these also contain cover for unemployment.

The FSA keep a watchful eye on the way in which the public purchase general insurance covers and have stated “There may be a risk that customers buying it may not understand the limitations ….” 

Also, it was emphasized that they were uneasey about the low rate of claims on these insurances which possibily be the effect of excessive prices and lack of competition. In another FSA investigation, this one based on “cold calling” selling procedures, the regulator was critical of the very poor sales standards for various products and warned that the benefits of accident cover were “sometimes exaggerated”.

The low rate of claims, talked about above, indicates the amount of money settled in claims, against that received in payments is in general low.
For that reason, it’s improbable that pure accident cover would profit you very much. It would appear to be much better then, to use an insurance policy that encompasses disability or death insurance cover within a really all-inclusive life cover.

Most people do not know that many of the everyday credit cards, such as Halifax All In One, Capitol One, Natwest, Egg, Barclaycard and Virgin Money to name a few, offer “travel accident” cover of up to £110,000. That covers you for death or accident which occurs whilst on transport which is supplied to the customer for using their cards.

When you have a little spare time, it is wise to sit down and find out just what you have in the way of insurance cover. As we’ve seen, some, in fact a lot of, kinds of insurance have overlapping benefits and it may be right time to go through just what insurance cover you do have and make certain that your present lifestyle hasn’t altered your insurance needs.

You’ll get all the help that you want by going on-line and looking up an independent insurance advisor, you can assess your personal needs, verify any doubts you have about present policies and generally search a very varied industry to find exactly the right product for you and your family.

Bookmark It

Hide Sites

Andrew Merricks, head of investments at Cambridge based financial adviser Frank C Booker Financial Services Ltd, counsels that it is very irresponsible of people not to have Life Insurance and/or Critical Illness Insurance as he insists that life has two potential risks – either being alive too long and dying too soon.  “Its absolutely vital to have some cover in place – particularly if youve got small childern,” he says. “In these unsettled times you must construct your own little stronghold because nobody else is going to do it for you.”

Matt Morris at Bestdeal says now is the best time to invest in such insurances as there are lots of very cheapest life insurance quotes around due to to the fierce competition for business within the insurance industry. “The cost of cheap life cover has come down – decreased by about forty five per cent in three years. It has never been so cheap,” he says. “The critical illness insurance market paid out on eighty five per cent of claims in 2005 – escalating from 81 per cent  the during the last year.”

Check what insurance cover you already have before you take out any more.  Do already own any investment plans or does your company pension fund give you any other cover?

The easiest way to calculate how much cover you require is to work out how much you would want to retain the same level of living over a year and then multiply it by 20 years.  The minimum amount required should pay off any outstanding debt and provide a lump sum for all your dependants.

Making sure you get the best deal.

When choosing your insurance policy it is very necessary to read the guide that many insurance companies have of the conditions and illnesses that they deal with. It will catalog everything and should be clear-cut and easy to comprehend.  You will also want to review the documentation of the significant facts of the insurance which will contain all exclusions and benefits.

When people take on the responsibility of a mortgage they are normally counselled to take out critical illness protection insurance but should look around and not just take the first insurance policy proposed.

If you start paying these premiums when you are younger they are very much cheaper, unlike if it is left until you are older, when cover rises quite considerably.

Insurance payments can also be lowered by quitting smoking cigarettes.  Alison Hines, manager of protection insurance at AXA Insurance states ” As well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”

If you stop smoking you can take off as much as a 1/4 off life insurance, critical illness cover and income protection insurance payments because the facts that we now have proves that smoking can trigger critical illness and aggravates any other existing medical conditions.

If your circumstances change you may have to alter your policy. Never think that once you have bought your policy that you can just carry on with your life and disregard it. At all times be very aware of the insurance cover you have and make certain that, should your circumstances alter, or, are about to alter your policy must have capacity for these alterations.  Perceivable examples are moving jobs, or perhaps you intend to increase your family, regularly consider everything that may increase your costs to live and must be to be covered if you are too ill to work.

Bookmark It

Hide Sites

Andrew Merricks, head of investments at Lancaster-based financial adviser Peel Townsend Financial Services, counsels that it is very shortsighted of people not to have Life Assurance and/or Critical Illness Insurance as he maintains that life has two major threats – either being alive too long and dying too soon.  “Its absolutely essential to have some cover in place – particularly if youve got a young family,” he states. “These days you need to build your own little welfare state because no one else is can do it for you.”

Greg Suttcliffe at Bestdeal says now is the right time to buy such insurances as there are many very cheap premiums about owing to the intense competition for business within the industry. “The price of life insurance has come down – reduced by about forty five per cent in three years. It has never been as cheap,” he adds. “The critical illness industry paid out on 85% of claims in 2007 – up from 79 per cent  the previous year.”

Be aware of what insurance cover you have before you take out more.  Do you have any investment policies or does your company pension fund give you any cover?

The best way to assess how much cover you need is to calculate how much you would need to have the same standard of living over a year and then times it by twenty five years.  The minimum amount needed should pay off any outstanding debt and provide a lump sum for all your dependants.

Making sure you get the best deal

When making a decision on your insurance cover it is very important to read the manual that many insurance companies have of the illnesses and conditions that they deal with. It will list everything and should be clear-cut and easy to grasp.  You will also want to see the documentation of the significant facts of the cover which will contain all benefits and exclusions.

When a person takes on the responsibility of a home loan they are normally advised to take out critical illness insurance cover but should research the market and not just take the first insurance cover suggested.
If you start paying these insurances when you are younger they are significantly cheaper, distinctly different to leaving it until you are older, when insurances goes up quite substantially.

Insurance premiums can also be reduced by giving up smoking.  Alison Hines, manager of protection at AxA Insurance states ” as well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”

If you stop smoking you can knock as much as a third off life, critical illness cover and income protection insurance premiums because the facts that we now have shows that smoking can trigger serious illness and aggravates any other existing medical conditions.

If your circumstances change you may have to alter your policy.

Under no circumstances feel that once you have purchased your policy that you can just continue with your life and forget about it. Always be very mindful of the cover you have and make certain that, should your situation change, or, are about to change your insurance must accommodate these changes.  Clear examples are changing your job, or do you intend to have more children; frequently think about everything that may raise your living costs and will need to to be covered if you are taken ill and cannot work.

Bookmark It

Hide Sites