Payouts for critical illness claims have overtaken claims for life policies for the first time, say Friends Life.
Head of underwriting, Chris Pollard, says the provider paid out £122 million in critical illness claims in 2014 – £1 million more than for life claims.
“Critical illness offers a financial safety net which means people can concentrate on getting better and not have to worry about paying the bills,” says Mr Pollard.
Cancer remains the highest cause for a claim, but there were increases in heart attack, stroke and multiple sclerosis claims paid out. Customers with diabetes cover received more than £600,000.
Paid out – 94%
A total of 94% of critical illness claims were paid out – up from 91% in 2013 – and a further £1.7 million was paid to 88 families in child claims.
The firm paid out 99% of life and terminal illness claims in the same time frame.
Friends Life is one of 10 providers of critical illness cover that we work with. Cover is available from just £5 a month.
None of us expect a critical illness will happen to us, but the reality is that it is likely to affect many people at some time during their lives. Having insurance to cover it means that, if the worst happens, you and your family will be protected from the inevitable financial impact.
Loss of income due to long term illness and recovery has a severe impact on normal family life, particularly the finances.
Critical illness cover is there to pay out a cash lump sum if you are diagnosed with any of the illnesses covered by the policy.
It can help you pay off your mortgage or other debts, cope with everyday bills and expenses, or fund any extra care or treatment necessary to recover from the illness.
The very least it does is to take off the pressure and give you and your family more time and space to concentrate on getting you fit and well again.
Types of illness covered generally include heart attack, stroke, cancer and many others. All providers have a full list so what is covered is clearly identified at the outset.
The amount of money paid out will vary according to the type of policy you decide to take.
It is often possible to add critical illness cover to your life policy. It may be cheaper to have the two combined rather than take out two separate policies.
Usually once a claim is paid out on a critical illness policy the whole policy stops and you will no longer need to pay premiums.
Here to help
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