Everyone should consider critical illness cover, according to Jennifer Gilchrist, senior product development manager of Bright Grey and Scottish Provident.
She says: “The younger your clients buy cover the cheaper and more affordable it will be. Even if your client’s budget for protection insurance is small, you may be able to provide them with a small element of critical illness cover, for example the amount of their annual salary, which will provide a safety net for a year should they become ill and are no longer working.
“These days life and critical illness cover can be for different amounts. The life cover could be for the full amount of the mortgage, say £150,000, with critical illness cover of £30,000 or £40,000 just to provide some cover as a starting point.
“Critical illness cover could be increased when your client has more disposable income to spend.”
Unlike life assurance, where there should be a demonstrable loss to a third party, Alan Lakey, senior partner at advisory firm Highclere Financial Services, says critical illness cover is essential to anybody whether they are single or married, own a home or rent.
The reason critical illness is so essential is down to the financial consequences of being diagnosed with a critical illness, Mr Lakey says.
He says: “The funds can be used to repay an outstanding mortgage or other credit, seek private medical treatment, meet the cost of convalescence or the cost of adapting a home or car for future needs.”
Generally Steve Payne, managing director of protection for Friends Life, says he would recommend that anybody with a job, a house and a family considers taking out a critical illness policy.
Mr Payne says: “Although it is not the nicest thing to think about, it is important to consider what impact there would be on these three things (a job, a house and a family), should you become seriously ill.”
Those with financial and family responsibilities must consider the cornerstone of their financial planning to protect themselves and their families should the worst happen, adds Peter Hamilton, head of retail propositions for Zurich.
