Some cover is better than none, Ageas says
Cash-strapped consumers are being urged to consider taking out small levels of critical illness (CI) insurance if they feel unable or reluctant to pay for top level cover.
As household budgets become ever-more stretched, Ageas Protect said it is understandable that some individuals feel unable to take out protection cover that could prove vital if they should fall seriously ill.
However, the insurer said it has conducted research which shows that one in ten parents would be prepared to pay £20 a month for a CI policy which covered themselves and their children, according to research published this week.
A survey of over 2,000 adults for the life office also shows that 15% of adults would be prepared to spend £5 a month, while 17% would spend up to £10 each month.
Andy Milburn, head of marketing at Ageas Protect, said that given the fact that a non-smoking thirty nine year old male, for example, could get £25,000 worth of accelerated CI cover for £14.59, some form of protection is within the reach of many people who are otherwise going without.
The research found that while parents are more likely to have life insurance, CI or income protection cover in place, six out of ten (60%) parents with children under 18 years – around 9.5 million parents – have no protection cover or financial provision in place to support their own or their child’s medical bills, as well as any time off work to look after a sick child.
Milburn said that it is “clear” that parents are willing to pay to protect themselves and their children, at least for a “reasonable” monthly amount.
He said: “Starting off with a small amount of CI cover, which can always be increased at a later date, could be the perfect solution to help educate not only parents, but consumers up and down the country, that CI cover can be taken out for the same monthly outlay as a pet insurance policy, and will provide a vital support at a time of need.”
Last year almost nine in ten (89%) of respondents to an Association of British Insurers survey said they would be prepared to pay no more than £5 a week for income protection cover, while 29% said they would not be prepared to pay anything at all.
COST OF LOWER LEVELS OF CI COVER
£25,000 Accelerated Critical Illness
M ns 30nb to age 65: £9.98
M ns 39nb to age 65: £14.59
M ns 43nb to age 65 £17.70
F ns 30nb to age 65: £9.53
F ns 39nb to age 65: £13.71
F ns 43nb to age 65: £15.66
£25,000 Accelerated Critical Illness with Total Disability
M ns 30nb to age 65: £11.84
M ns 39nb to age 65: £16.69
M ns 43nb to age 65 £20.38
F ns 30nb to age 65: £12. 68
F ns 39nb to age 65: £18.84
F ns 43nb to age 65: £21.51
Source: Ageas Protect
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