Critical Thinking

Winter is disappearing, the clocks have gone forward, there is the promise of sunshine and dreamy warmer evenings. Before March fades too quickly and we rush to summer, I’d like to look at a topic that has me worried, particularly through the first few months of 2017 when I’ve spoken to more new clients than ever.

I have tried to keep all my blog posts light-hearted and where possible fun. I’ve tried to share my thoughts and maybe introduce ideas, or maybe a new take on an old idea. I hope to do the same this month but I must start by explaining what is worrying me.

Every week I hear variations of, “I understand what Life Insurance does, but I don’t know what Critical Illness Insurance is for,” or something like, “What is private medical care?”, “Can anyone have Income Protection?”

Hearing statements like that worries me; not because those individuals don’t know (why should they) but because it illustrates that the (insurance?) industry, and to a certain extent the government, has not done anywhere near a sufficiently good job in promoting importance of insurance types, explaining what it is and why it might suit someone and their family.

I can’t control the other companies, or what we teach 16-18 year olds about the financial world, but I can do my best on behalf on the financial services industry to help raise awareness. So one blog in every three or four, I am going to do a spotlight on a product. Not too in depth, but enough to allow people to know what is what. These like the other blogs will be stored on my website but catalogued into a product section to form a reference library.

This month I wanted to take a few minutes to look at the importance of Critical illness Cover (sometimes called Serious Illness Cover) and it seems appropriate to do so at the end of March where two forms of Cancer (Ovarian and Pancreatic) use the month as their primary fund and awareness raising time of year.

 

Critical Illness – A beginners guide

 

Q – What is Critical Illness Cover?

A – Critical Illness Cover is an insurance policy that pays a lump sum on the diagnosis of a defined Critical Illness.

 

Q – Why would I or my family want Critical Illness insurance?

A – The pay out from a Critical Illness Insurance policy can help reduce the financial impact of a being so ill; helping with practicalities such as helping to pay off your mortgage, helping to pay any bills, maintain your family’s lifestyle and covering costs of getting the most advanced treatments allowing you the time to recover.

 

Q – Can I take insurance out for me or my partner?

A – You can take a policy out to cover just yourself or to cover you and your partner in a joint policy.

 

Q – Are children covered?

A – Most providers in the market offer a children’s cover option included in the price. The amount they are covered for is usually set as a maximum at 25% of the full insurance policy amount.

 

Q – What happens if I die?

A – As an adviser I will discuss the importance that a client purchase a combined Life and Critical Illness policy at the same time, meaning that should you die the policy will pay out to your beneficiaries and if you get a critical illness, the pay out will come to you.

 

Q – Will the policy pay out?
A – Insurers are in the business to pay claims, not to decline them. 97.2% of all individual protection claims in 2015 were paid, while just 2.8% were declined*. When claims are declined, this is usually due to the customer not disclosing important information when taking out the policy like being a smoker or previous serious illness.

*https://www.abi.org.uk/News/News-releases/2016/04/Protection-Claims-2015-QA

 

It is impossible to know all we need in life to get by and that’s why we go to people for advice and help. Be it a plumber, solicitor or financial adviser. If there is anything you want to know whether you feel you already should or not please don’t hesitate to give me a call.

If you would like to know more about Critical Illness Cover, the variety of options and how they might fit your situation and budget please let me know.

 

All the best,

 

Ben Mason
Ben@futuresprotected.co.uk
07702 577 452
www.futuresprotected.co.uk

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