How Badly Ill Do You Need To Be To Make A CIC Claim?

Critical Illness Cover (CIC) pays out the total sum insured, which is not taxed, if you are identified with a life-threatening complaint which renders you incapable of working.

Insurers are identifying that while life protection claims are falling, they are having to pay out on more and more claims on CIC policies.  The consequence of this is that the cost of CIC is becoming higher than life assurance.  If the quantity of CIC claims fall then consequently the cost of payments will reduce too.

The cost of Legal & General and Swiss Life’s CIC has risen by about 19 and 24 percent respectively.  But the likes of Liverpool Victoria and Norwich Union win in the price increase race with uplifts of up to sixty per cent.  Other providers are looking to charge more for CIC as well as the market speculates over the designation of ‘life-threatening condition’ and medical science makes great improvements in the supervision and control of special conditions.

The Association of British Insurers has analysed policies for heart issues and breast cancer, for example.  If these complaints are diagnosed early on they are no longer deemed to be ‘life-threatening’, at least for some individuals.  Another example is diabetes.  Presently Tesco is the only insurance organisation which still allows this ailment on its inventory of critical health conditions covered.

A CIC cover option usually is for an agreed period, for example equal with the length of time on a house loan, and there is no change in the charges.  The charges are costly for this cover.   Insurance organisations are now looking to propose reviewable plans where both the illnesses covered and the fees paid are reviewed every 6 years, which should cost significantly less.

Ray Mears, senior manager of the independent financial adviser division of Liverpool Victoria, reckons that more people will select the reviewable cover options as they become more cost effective than the guaranteed plan.

Legal & General still offers a guaranteed CIC but has put its premiums up for that.  It has launched a reviewable cover option as a substitute.  Aviva and Skandia no longer provide guaranteed CICs.

Rob Morton, protection director at Legal & General, declares, “The reviewable regular payment will be normally be around fifteen % lower than the guaranteed option.”

An existing guaranteed CIC policy cannot be updated to redefine any illnesses which are presently classed as ‘life-threatening’ but which may not be in that category in the future.  So if you have this already and are happy to pay the charges you don’t have to worry.

If you are thinking to take out a CIC scheme anticipate to pay less for a reviewable cover option.  But if you want the extra lack of worry a guaranteed cover option gives, grasp it fast while there are still some around, and do not forget you will have to pay more.

2009
12/07
CATEGORY
Critical Illness
Life Insurance Policies
TAGS


146 comments

Pay More In Than You Get Out? Yes You Can Over 50s Life Insurance

Summary
This article looks at the over fifties life insurance policies that do not ask questions about your medical history but are they worth buying? Carry on reading for more information.

The over fifties life insurance plans are selling like hot cakes. With no medical questions they guarantee acceptance and are regularly endorsed by mature personalities like Cilla Black and Nigel Havers. People who take out the best life cover might be paying far more in than their beneficiaries will get out.

Pledging a settlement on the insurance policyholder’s death, payments commence at about 8 pounds growing to around 62 pounds. Being sold to clients between fifty one and seventy nine the payout influenced by the premium paid, gender and age when the policy begins.

Ominously, no questions about their health are asked.  Some payment plans stop after a specific amount of time, but will still be valid until the insurance policyholder passes away. In other plans the premium is made until the holder passes away, however insurance holders can put more in than they get out depending upon when they die.

Referring to adverts for The Post office’s over 50’s Life Cover, Leon Myers of independent financial advisers Investmentbox says ‘I can’t comprehend Michael Parkinson supporting this kind of insurance product. He is a quality act, but for this type of plan the same cannot be said.’
Managing director at  The Post office’s over 50’s Life Cover, Mark Combs defends Clooney’s role, saying he is only making people mindful of the plans existence , for which there is substantial demand. He says, ‘The attraction is their affordability because of their low premiums and the guaranteed acceptance process.’

Still, you could get an improved deal somewhere else buying regular insurance policy on  equivalent terms ‘People could get twice or three times as much for their money from a normal life insurance cover, in return for replying to a few questions.’ Says George Meakins of TGB financial services.

Not enquiring about any medical history necessitates much dearer premiums as these policies interest customers with pre-existing conditions who may pass away before the company has covered its cost. Companies also restrict any settlement for the first 2 or 3 years to  protect themselves. A reimbursement of the payments made is more often than not repaid if insurance policyholder departs this life from natural causes during this time.

Director of financial services at Money Supermarket, Jonathan Smith, admits that the price may be less for regular life assurance but often by the time you reach your 50’s, many have endured some form of medical condition, therefore why consumersare fond of the over 50’s policies. Plan holderspaying more in than they can ever get outis one sphere he doesn’t agree with. ‘We put a cap on the premiums,when we assemble our plans,’ he states, this means that once policyholders have paid the amount insured their premiums are halted.

Many over 50s plans do eventually have cut off postions, but lots of customers have paid more than they should before this time. Premiums normally stop at 85 with the Liverpool Victoria plans and the PO running them for a set term.

One of the major reasons clients takeout these policies is to pay interment expenses. In spite of this, the eventual settlement may not be enough money. A pre-payment plan would be a better selection with Lincoln funeral care providing 4 packages priced between 2,400 pounds and 3,195 pounds. These can be paid for over a period of three years.

2009
11/23
CATEGORY
Life Insurance Policies
TAGS


182 comments

Have Another Look At Your Protection Insurance

Summary:
This is the second of two associated articles about Accident cover and other related varieties of personal cover. You may also wish to read Health Insurance -Dont Break The Bank.

You need to find out whether your company provides you with accident insurance for you? Quite a few firms do without the employee being aware or remembering. Hence if you need this type of cover, it is necessary to check it out. But remember that accident cover may also be included within your life insurance.

If you already have cheapest life cover and have the funds to strengthen your insurance portfolio, then it may help to think about a fairly small extra payment to purchase something like an income payment protection insurance, which would mean that you’d get a monthly  payment whilst off work or may be even until you retire.

Income payment protection covers have be moulded to provide you with an amount of money each month, while you are unable to work as the result of an accident or illness. They are constructed to pay out until you retire. There are other insurance policies which go by the name of Accident and Sickness Insurance, that will pay out for a restricted period and many of these also incorporate cover for unemployment.
The Financial Standards Agency (FSA) keep a careful eye on the way in which the public purchase general insurance covers and have warned “There may be a risk that customers buying it may not understand the limitations ….”

And, it was underlined that they were concerned regarding the low amount of claims on these policies which could be the result of high prices and lack of competition. In another  Financial Standards Agency investigation, this one centred on “cold calling” selling techniques, the regulator was fault-finding of the really poor sales ethics for a varity of numerous products and counseled that the benefits of accident insurance were “sometimes exaggerated”.

The low rate of claims, mentioned above, means the amount of money paid in claims, versus that received in premiums is in general low.
Therefore, it’s questionable that pure accident insurance cover would assist you a great deal. It would seem to be far better then, to use a product that mixes death or disability insurance cover within a truly broad life asurance cover.

A lot of people are unaware that many of the normal credit cards, such as Capitol One, Barclay card, Natwest, Virgin Money to name a few, give “travel accident” cover of up to £150,000, that covers you for death or accident which takes place while in transit which is aquired by using their card.

When you have time, it is wise to sit down and sort out just what you own in the way of insurance cover. As is apparent, some, in fact many, types of cover have multiple benefits and it may be a good time see just what insurance policies you do have and make sure that your circumstances haven’t changed your insurance needs.

You’ll get all the aid you need by visiting the internet and checking out an independent insurance advisor, you can assess your personal needs, test any queries you have regarding new insurance covers and generally search a very expansive industry to find just the right product for you and your loved ones.

2009
10/26
CATEGORY
Critical Illness
Life Insurance Policies
TAGS


11 comments

Many Types Of Protection Insurance, but Which One Do You need To Protect Your Family? Part 1

Summary
There is numerous insurance covers obtainable to protect people and their families should anything bad happen to them, but hardly any people are acquiring them? This article investigates what is being offered in the present market.

Income protection, Life Insurance, Critical Illness Insurance and Mortgage Payment Protection Insurance are are out there in large quantities but very few are buying insurance policies according to Zurich Re their approximated funding shortfall is an incredible 1.6 trillion. While people want only the best for their loved ones 1000s of them risk financial damage because they have not taken saftey measures to safeguard them if anything unfortunately occurs to the primary main source of income.

Prior to setting out to search for the best proposals you need to know what you are getting into and precisely what it is you require for your family? As soon as you have found the insurance cover that is appropriate for you, you should then maintain it in line with your life and the alterations that could take place that will alter your needs.

Life Insurance (also known as life assurance)

As the policy suggests this policy offers security in the occurrence of untimely death in the way of financial protection for your loved ones? If however, you do not have a a husband or wife or any children then it is not generally worth thinking about this cover.

Life insurance quotes gives 2 options ? these are whole of life and term. Term insurance cover are likley to work on a set time basis, for example, over a twenty five year home loan and should only pay out if you were to pass away within that time.? Whole of life settles a lump sum when you depart this life. So get quotes for life insurance.

Critical Illness Insurance policy

Critical Illness cover gives a lump sum after a specific critical illness is diagnosed, such as a stroke or cancer. This pay-out may be employed however the policy holder chooses either for private health care or to pay the mortgage off. But be forewarned, always read the small print as particular illnesses (for instance some cancers), could possibly not be covered. Although, certain companies might not cover any pre-existing conditions or illnesses; while others will quote just on their assessment of the persons health at the time of application.

Income Protection InsuranceIncome Protection pays out if a person will be unable to work for a period of time owing to sickness or an accident. Generally, the longer you consent to wait for the payments to begin the less your policy will be so payments could be delayed initially but once they start they will keep going until either the policy holder dies or the policy expires usually on retirement or the policy holder goes back to work. Additional benefits can consist of retraining to aid clients returning to work. Income Protection Insurance will also pay out for illness not categorised as critical such as stress.

?

Accident, Sickness and Unemployment CoveThis cover can also be called Payment Protection and Mortgage Payment Protection insurance. They will pay any loans or mortgage payments in the occurance of illness, accident or job loss. They tend to begin one month after the earnings stops and usually carry on for one to two years, however once more read the conditions for any restrictions or exclusions. Most insurance companies insist that you have had a steady work contract by the same firm for at least one to two years to qualify.

2009
10/08
CATEGORY
Critical Illness
Life Insurance Policies
TAGS



3 comments

Seeking immediate protection is critical

Summary
The compensations provided by life insurance policies are balanced with the benefits of critical illness insurance cover. The arguments for taking out critical illness insurance cover. 

Think about this scenario ‘If illness prevented you from working could you afford to pay your monthly commitments?’ A lot of us would say ‘No’. So clearly we need to contemplate insuring ourselves against the unpredictable happening. A standard critical illness policy would pay out a tax free lump sum if the insurance holder is diagnosed with a potentially terminal illness. The lump sum may be spent in any amount of  ways. For instance, you could pay off your mortgage, make alterations to your home to accommodate a wheelchair, or simply settle your bills.

The coming months will see a big price rise, so if you haven’t got any insurance cover at present, now is the time to sign up. The cost of cheap life insurance has has lowered over the past ten years. There are numerous reasons why this has transpired. First of all the Aids epidemic, which was probable in 1998-1984 never occurred and secondly the recovery rate of those suffering from heart attacks and cancer has greatly improved. These issues have enabled increased. Protection is regularly reassessed by insurers, when the amount of claims for certain conditions are assessed. Following such a review Legal and General will be modifying premiums soon, with the cost of life insurance cover coming down slightly and the premiums for critical illness insurance cover going up. The insurer is powerless to say by how much, as the client’s circumstances and the sum insured for fluctuate from person to person, but the increase should not be huge is forecasting that there could be a rise of between 32 and fifty per cent in critical illness payments in the near future. It also suspects that guaranted premiums may either become unaffordable for some people, or even cease to exist owing to the volatile marketplace.

Swiss Re has announced that it will no longer 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 two of the big high street insurance companies.  A thirty to thirty five per cent risehas just lately been broadcast by Prudential and Scottish Equitable. However this is very little compared to the incredible increases written into the insurances now presented by PPP and Standard Health Care, which vary between 40 to 50%.

It is presumed that this development will be followed by all the other re-insurers. Fixed monthly preiums where the monthly payment is held for a specific period, usually twelve years, may no longer be provided by insurersInsurance Companies.  After this, premiumswill be re-assessed each year, just like car and home and contents insurance. The outlay for the client will be far greater in the long term. The message is crystal clear. Critical illness insurance cover is getting more costly so purchase it now to gain from guaranteed premiums and the moderately low rates being givenat present. Let us pray that you will never have to claim, but figures state that unfortunately many of us will.

2009
09/14
CATEGORY
Critical Illness
TAGS



12 comments

Insurance Companies Take Positive Steps To Improve Protection Insurance

Summary
In this article we explain  how Financial Protection Insurance may become more popular
with the insurance market at long last making constructive steps that should with a bit of luck be successful.
Most specialist  advisors would be of the same opinionthat Financial Protection Insurance is vital to the majority of families, whether it may be a  safeguard in the event of prolonged illness, premature death, cover for an accident or loss of employment (especially in the present economic climate).

Life Insurance is the foundation of all financial assurance to ensure a lump sum that is not taxable, in the event of a death or for cover for a mortgage.  Regrettably, a percentage of other Financial Protection Insurance policies, do not do not have similar sound qualities and have been branded as being miss-sold.  Also, based on what we are now aware, critical illness cover has suffered because of astonishing omissions from insurance policies making it feasible for insurance companies to reject many claims, as genuine as they may be.

However, a little faith was restored when Norwich Union reported on the conclusion of claims on Critical Illness Cover on their 1/2 yearly statistics. 

Critical Illness claims were being declined because clients did not reveal their full health record.  As a result Legal and General  says that in the last five months the number of declined claims has reduced considerably from 6.8 per cent in the previous year, to 1.5 per cent.

Why?  We think, not only Aviva but all of the insurance companies, because of damaging public relations, have been put into a position whereby they must diminish the number of claims that are rejected. Does this show how strong the press can be?  Debateable perhaps – you may think we are dubious but we think there are other issues that encouraged the insurers to make modifications.  A short time ago, as a result of bad press, sales of Critical Illness Cover  have declined which in turn has noticeably influenced the insurance company’s profit. This is more likely to have been the catalyst to promote change!

Scottish Provident, Friends Provident, Axa and Norwich Union have instigated some major changes purposely designed to decrease their rejection rates. Firstly, they silhouette clearly that all medical disclosure, however trivial a visit to a Doctor could have been, must be includedmade known.  Friends Provident, amongst others will get a medically trained person to telephone every applicant to discuss all the details of their medical history.  If the policy then goes on risk, some policyholders are being reminded that it is vital that they give complete health disclosure and they are allowed to add or correct any information on their application document.

The Insurance Company may then re-evaluate the risk and if it is believed to be increased the monthly payments will most likely be raised – which seems more sensible and ultimately more appropriate than paying the original premium then having a claim rejected owing to non-disclosure of medical history.

This process should have been put into operation by the insurers a long time ago as the public’s concept of Protection Insurance has eroded by their somewhat strange approach. Without doubt, there is an obvious and essential need for protection insurance so we can hope that it is able to re-establish trust and then the popularity it duly deserves. 

 Make sure that you compare life insurance policies before you make your final decision. Prices vary enormously and so does the cover and various additioanl extras.

2009
09/01
CATEGORY
Life Insurance Policies
TAGS




7 comments

Will Critical Illness Cover be a Lifeline in your Condition?

Not many of us are covered against severe illnesses even though it may be fall us unexpectedly. Unum Provident, the income protection provider, has carried out  that reveals only 5.2 per cent of the the British work force possess critical illness cover, even though they will obtain a lump sum if they have cancer, a heart attack or suffer a stroke.

17% of people think the insurance to be too costly, the analysis reveals, which give reasons for the low take up.

Potential customers are also puzzled by the phrasing of policies and the difference between permanent health cover and critical illness insurance.

A working party put together by the AIB, is a present re-evaluating the  phrasing of policies. The situation may become much more confusing if the  operational party decides to decrease the number of diseases defined as a critical illness.

Legal and General have unveiled a new plan named Elixia 123, which it states reduces the price of critical illness insurance by around 25 per cent and on occasions by upto 50 per cent.

This will be accomplished by allowing clients to pick the illnesses for which they want insurance. There are 3 categories of risk. Group one. Invasive cancer, strokes and heart attacks. The insurance will only pay out if the disease is life threatening or leads to major life style changes.

Group 2. illnesses that do not have so much impact on life expectancy but do dramatically affect life style. Blindness, motor neurione disease and Alzheimer’s  are included in this category.

Category 3. Illnesses that are traumatic but have slight effect on life expectation. Life style changes may be involved. This group protects strokes and minor heart attacks, open heart surgery and less serious types of cancer.

You can pick a mix of groups and your cost is evaluated accordingly. If you can’t afford all of the groups you could simply choose category one  to insure yourself for life threatening events. You would then ge a 100 per cent  pay out if you are diagnosed with a category 1 event and nothing in groups two and three.

Maybe you are more worried about prolongeddisability, in which case you might opt for  a full settlement under category two and a lesser percentage for one and three. Clients Consumers who need full cover may select the full 100 per cent benefit no matter which category their illness is featured in.

Many people may not understand

Critical illness cover is not that expensive so it is advisable to go for a comprehensive insurance, which will give you peace of mind.

Jennifer Green, the distribution development manager at AXA PPP Healthcare, is worried about how the jargon is explained. She emphasises that consumers must comprehend precisely what they are buying. For example, when is a condition defined as major? The 1st and the 3rd groups need elaboration before buying insurance as there is not much difference between them in her view. Difficulties can happen later if the consumer has not fully understood the terms of the insurance policy when they Moria Jennings.

2009
08/27
CATEGORY
Life Insurance Policies
TAGS
410 comments

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2009
08/27
CATEGORY
Uncategorized
3 comments