Critical illness cover is not wasted on the young

‘Youth is wasted on the young’ but it appears insurance isn't. Research from moneysupermarket.com shows the average age to buy critical illness cover (CIC) is 33.

The research highlights it isn't just the elderly who are concerned about falling victim to a devastating illness. CIC is essential if you want cover against conditions, including cancer, stroke, heart attack and multiple sclerosis (MS). The majority of those who contract MS are aged 20 to 40, almost half of all cases of testicular cancer occur under the age of 35, and the peak incidence of new cases of cervical cancer are in the 25 to 29 age group.

Emma Walker, head of protection at price comparison website moneysupermarket.com, said: “It is encouraging that young people are opting to secure themselves against critical illnesses by taking measures to cover themselves should the worst happen. At 33, people might be undergoing life changes such as getting married, buying a new home or starting a family and, as a result, they have new financial responsibilities.”

CIC pays out a lump sum if you have one of a number of illnesses and can help in the following circumstances:

Being able to repay your mortgage and any other debts
Paying for private medical treatment or professional nursing care
Paying for a holiday for recuperation
Home improvements/adaptations to the home
Maintaining lifestyle should the breadwinner be unable to continue working
Replacing the value added to the family home should a homemaker suffer a critical illness, such as the cost of child care, cleaning, chauffeuring and cooking.

CIC does not have to be expensive. For less than the cost of a daily coffee at a café, you can easily get basic cover. For example, AEGON Scottish Equitable provides cover for £34.50 a month.

Life and Critical Illness Cover for a level-term policy for 25 years, with guaranteed premiums throughout the policy, based on a 33-year-old non-smoking male

Provider - Monthly Premium
AEGON Scottish Equitable - £34.50
Scottish Provident - £35.61
AXA - £36.35

Policy will pay £100k as a lump sum at any point in the term

Sourced by moneysupermarket.com 13.08.07

Emma Walker added: “Non-disclosure and a claim not meeting the policy definition are the two main reasons for a claim being declined. While the number of declined claims are reducing year on year; one in fiveclaims are still rejected because of non-disclosure.

“It is important consumers understand exactly what they are buying. I recommend speaking to an adviser who will highlight appropriate policies. People should view income protection, critical illness, life insurance, private medical insurance and mortgage payment protection insurance as a basket of goods, choosing which are most relevant for them at any given moment.”

moneysupermarket.com has the following tips when looking for protection:

Don’t always be lured by the lowest priced premium. Look at policy coverage and extras within the cover to make sure you are getting the best value for money

Make sure your answers are correct and give all of your relevant personal information and medical history, or a subsequent claim might be rejected

Always review cover at life changing events such as a change of job, having children, a change in marital status, increased debt or moving house

When replacing a policy, always seek advice and compare like for like, as the premium may be cheaper but the coverage might not be as comprehensive. Never cancel anything until the new cover is in place

If the premium is too big for your budget, consider getting some initial CIC that you can add to later.