ProtectionNov 3 2016

Why critical illness cover is worth it

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Why critical illness cover is worth it

"As with all insurance the cost relates directly to the risk so if a premium seems high, it is almost always because your likelihood of receiving a payout is increased."

According to Mr Jeynes, this is where "cost must be separated from value". He explains: "We all recognise that with any purchase, we can buy at the cheap end, the expensive end or somewhere in the middle.

"The key to making that decision is information - does the customer realise the extra features and benefits the mid-range or 'expensive' option has, so they can weigh up the value of these, rather than just fixate on the cost?"

Range

Clients also should be aware there is a range of cost. Chris McNab, protection product manager for LV, explains the premiums depend on a host of factors.

He says: "As with any insurance, the cost will depend on the client's age, smoker status, level of cover and the state of their health.

"For example, someone in their mid-20s could get £100,000 of CIC over 25 years, for less than £20 a month. This isn't overly expensive for the peace of mind it provides.

"However, the later you leave it, the more expensive it will get. For example, someone in their 40s wanting the same level of cover would see costs rising to approximately £50 a month."

simoney.kyriakou@ft.com

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