24/09/2024
Critical illness claims in the UK saw a significant spike in 2023 with the total value jumping 13% to a record-breaking £1.2 billion. The number of claims also rose 10%, with an average payout of £67,267.[1] This surge not only indicates that a growing number of people are facing unexpected health challenges, but it also tells us that more Brits are investing in cover to safeguard themselves financially, with sales of critical illness policies nearly four times higher than ten years ago.[2] Let’s delve into what this cover entails and how it can offer peace of mind through tougher times.
What is it?
Critical illness cover pays a tax-free lump sum if you’re diagnosed with certain conditions or disabilities. The kinds of illnesses that are covered are usually long-term and very serious - for example, heart attack or stroke, loss of limbs, cancer, multiple sclerosis, Alzheimer’s and Parkinson’s; some providers may allow you to add additional illnesses to your policy for an extra fee.
Why is it important
34% of UK adults either have no savings, or less than £1,000 in a savings account, whilst 64% believe they wouldn’t be able to last three months without borrowing money.[3] The reality is that being ill can leave you out of pocket, especially if it means you’re not able to work for an extended period of time. Critical illness cover is designed to help support you and your family financially while you deal with your diagnosis; having the money to spend on treatment, mortgage, rent or changes to your home (wheelchair access, for example), can really be a lifeline.
Cover for children
Children often feel (and act) like they’re invincible, but accidents and illnesses can and do happen, no matter how hard we try and prevent it. Every day in the UK, 10 children or young people are diagnosed with cancer – around 3,755 every year.[4] Child cover is designed to protect your family from the financial impact of accidents and some serious conditions (cancer being one). As a parent, the lump sum you’ll receive can help you cope financially and minimise any disruption to normal family life, allowing you to focus on supporting your child through their illness without added money worries.
At Owl Financial, we work with a range of leading insurers who offer child protection, one being MetLife’s ChildShield, which protects your children from birth, up to the age of 22. Other great options are available from the panel of providers we work with, so there’re lots out there we can advise you on.
Real stories
Curious about the real-world impact of critical illness protection and the value of expert advice? Read about Nora’s experience, where she assisted a client with a £50,000 payout following a shock diagnosis. Or explore how Jateen, one of our Executive Sales Managers, helped Mrs. M secure an £80,000 payout through a mixed policy that included critical illness cover, following a rare bacterial infection. Explore our case studies further to see how critical illness cover has made a difference for others.
Care beyond cover
At Owl Financial, we believe that true care goes beyond financial protection – that’s why our expert team are here to provide a listening ear and guidance when you need it most.
We also work with providers who offer a range of additional services as part of your policy, such as mental health support and counselling to help you through challenging times. For example, one of our providers, Aviva, has partnered with Macmillan Cancer Support to help you and your family through a cancer diagnosis with access to emotional, clinical and financial support.
Get in touch
Critical illness cover can be a real lifesaver when the unexpected happens. It's like having a safety net in place, ready to catch you when you need it most. Our expert team here at Owl Financial is here to help you determine the right policy options for your specific needs. Find an adviser today.
Approved by Openwork Limited on 24/09/24
[1] abi.org.uk/news/news-articles/2024/9/protection-insurers-pay-out-record-7.34-billion-to-support-individuals-and-families/
[2] https://www.abi.org.uk/news/news-articles/2024/3/record-number-take-out-income-protection-insurance/
[3] https://www.money.co.uk/savings-accounts/savings-statistics
[4] https://ukhsa.blog.gov.uk/2021/03/15/cancer-in-children-and-young-people-what-do-the-statistics-tell-us/
