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Critical illness cover and payment protection could prove crucial

5th December 2008 Print
With household debts and unemployment at a high, urges consumers to safeguard their finances and improve awareness of life insurance policies such as income protection and Critical Illness Cover (CIC).

As the affects of the credit crunch deepen and with recession likely to take hold, recent figures reveal unemployment is at its highest rate for 11 years while the average household is in debt to the tune of around £60,000. CIC or payment protection could prove vital if a person finds they are unable to work due to illness or unexpected redundancy.

Despite this, recent research from the UK's leading price comparison site shows people's awareness of policies such as Payment Protection Insurance (PPI) is limited; almost a quarter of people (24 per cent) don't know what it is, while only one in seven Brits (14 per cent) consider PPI crucial and already have it.

Emma Walker, head of protection at said: "There is a common misconception CIC is expensive; however, at around £30 a month it seems a sensible addition to finances and could provide peace of mind. CIC can cover mortgage or loan repayments, pay for private nursing care or treatment, or even fund a holiday to recover. We're all feeling the pressure on our finances at the moment and the additional money could make all the difference."

For Brits looking for a combined CIC and life insurance policy, found monthly premiums for a 35 year old non-smoking male or female, for £150,000 worth of cover over a 25 year period, from £32 a month. Alternatively a couple can get the same level of cover for just over £50 a month.

Emma Walker continued: "Its crucial to read the small print thoroughly and to be accurate when giving information at the application stage; non disclosure is one of the main reasons a CIC policy won't pay out. Like most other protection plans exclusions and caveats are commonplace."