Summary: Nowadays we live longer, even with a ‘life-threatening illness’. Insurers are re-defining this term. Reviewable CICs will cost less than guaranteed cover. How Ill Do You Have To Be To Make A CIC Claim?
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People are living longer with conditions which might have been a death sentence a decade ago, thanks to advances in medicine and treatment. Insurers are finding that while life assurance claims are dropping, they are having to honour more and more claims on CIC policies. The result of this is that the cost of CIC is becoming a lot more expensive than life cover. If the number of CIC claims fall then inevitably the cost of premiums will fall too. (cheap car insurance) The cost of Swiss Life and Legal & General’s CIC has risen by around 20 and 25 per cent respectively. But the likes of Norwich Union and Scottish Equitable far outstrip them in the price rise race with increases of up to 60 per cent. Other providers are looking to charge more for CIC as well as the market speculates over the definition of ‘life-threatening illness’ and medical science makes giant strides in the management and control of certain conditions. The Association of British Insurers has looked at cover for prostate cancer and heart problems, for example. If these illnesses are discovered early on they are no longer deemed to be ‘life-threatening’, at least for some sufferers. Another example is diabetes. Currently BUPA is the only insurance provider which still allows this condition on its list of critical illnesses covered. (cheap car insurance) Kevin Carr at broker LifeSearch explains, "Although this type of insurance was originally known as dread disease, many of the conditions currently covered by critical illness policies are becoming quicker and easier to detect and treat. Hence insurers have recently found themselves paying out on claims where the condition was not life threatening, which isnt the purpose of the policy." A CIC policy usually runs for an agreed term, for example tied in with the length of time on a mortgage, and there is no change in the premiums. The premiums are expensive for this cover. Insurers are now looking to offer reviewable policies where both the illnesses covered and the premiums paid are revisited every five years, which should cost a good bit less. (cheap car insurance) Page 2 |
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