Very little is more worrying in life than to be diagnosed with a serious or severe illness. Concerns are made a thousand times worse when your insurer tells you that they will not pay out on your critical illness insurance or private health insurance for the Cancer or HIV you are afflicited with.

You are told to peruse sub-clause five of paragraph 328 of the small print, which states that you have been diagnosed with the  wrong sort of cancer. Only tumours below the knee are covered and only the first five days of your treatment will be paid for, and then it is up to you to find the finance.

This situation may sound absurd, although brokers and insurance companies are regulated, this type of procedure continues to carry on. It has been a slow process to freshen up the industry and to ensure consumers get a decent deal.

A short time ago Cancer Backup, a registered charity, emphasizes this problem by organising a large assortment of  shopping surveys, which brought to light some disconcerting facts about the private health insurance industry. It found that of most of the leading insurance companies only PPP gave cover for cancer patients right through the length of their illness. Only the first part of the treatment is covered by the majority of health insurance companies. Treatment or care over a longperiod, such as hormone replacement or chemotherapy is not normally included.

Although brokers and insurers want to finance long term cover for insurance holders with life treatening illnesses, they won’t always make it clear to would be clients, at the time of taking out the policy what they are covered for. It’s a matter of cheap life insurance.

Eeven though both Macmillan Cancer Support and Cancer Backup have been in talks with comparable establishments within the market to lift the standard of sales practices and make the wording of policy documents much clearer, since the report was published two years ago, progress has been slow.

Critical illness cover and private medical insurance  is normally taken out by clients who are relatively robust and healthy. The last thing that crosses their minds is getting cancer. That is why it is so vital to spell out a life insurance policy’s exclusions before they sign up.

A statement of best practice for insurance companies writing and selling medical insurance policies has been modified recently by the Association of British Insurers, which is a much needed step in the right direction.

The trade body has now proposed that insurance companies and providers selling these forms of insurance should prepare typical case studies, which clarifies the conditions when an insurance policy will or will not be paid. Sadly insurers no requirement to adhere to this code, which is voluntary.

Even though the ABI’s initiative is to be appreciated, the best way of explaining an insurance policy is by asking the salesperson to explain the small print.

Furthermore, industry terminology is in spite of everything even now being utilized by insurers to confuse the client. For instance it is wrong to categorize cancer as an acute or chronic illness, argues Cancer Backup. Nevertheless insurance companies are resolute that it should go in the acute group. clients are only told about this when their claim has been rejected.

Even though the  Association of British Insurers have their heart in the right place, the insurance companies can only be made to upgrade their standards by the regulator. Better training of tele sales staff, who sell the majority of the policies, is also long overdue.

More rigorous marketing procedures are crucial with terminology being eliminated. At the end of the day it remains the responsibility of the insurance companies to ensure that their customers are fully aware of the terms of their insurance before they commit themselves.

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Think about this scenario ‘If illness prevented you from working could you afford to pay your monthly commitments?’ The vast majority of us would say ‘No’. So clearly we need to think about insuring ourselves against unpredictable events. A normal critical illness insurance policy (that’s serious illness insurance cover) would settle a tax free lump sum if the insurance holder is diagnosed with a potentially terminal illness. The lump sum can be spent in numerous ways. For example, you could make alterations to your home to accommodate a wheelchair,simply settle your bills or pay off your mortgage.

The next few weeks will see a rise in price, so if you haven’t got any life insurance cover at the moment, now is the time to sign up. The price of life insurance has has lowered over the past twelve years. There are copious reasons why this has happened. Firstly the Aids epidemic, which was probable in 1998-1984 never materialised and secondly the recovery rate of those undergoing heart attacks and cancer has very much improved. These reasons have enabled insurance companies. Protection insurance is frequently re-evaluated by Insurance Companies, when the number of claims for certain illnesses are examined. Following such a review Legal and General will be amending premiums shortly, with the cost of life insurance cover falling slightly and the payments for critical illness insurance cover increasing. The Insurance Company is unable to say by how much, as the individual’s situation and the sum covered vary from client to client, but the increase should not be large is forecasting that there could be price rise of between twenty five and forty five per cent in critical illness payments in the next few months. It also fears that guaranted premiums may what’s more become too expensive for some people, or even cease to exist owing to the unsound marketplace.

Swiss Re has proclaimed that it will not underwrite critical illness insurance policies from the end of December as the policies are costing them too much.

The price of cover has been increased by two of the big high street life assurance companies.  A twenty to twenty five per cent increasehas recently been publicised by Legal and General and Swiss Life. However this is very little compared to the incredible price increases written into the policies now provided by BUPA and Friend’s Provident, which fluctuate between 40 to 50%.

It is feared that this development will be followed by all the other re-insurers. Guaranteed premiums where the monthly payment is held for a precise term, typically ten years, may no more be offered by insurersInsurance Companies.  After this, premiumswill be re-evaluated each year, just like motor and home insurance. The outlay for the consumer will be far larger in the long term.

The message is clear. Critical illness Insurance is growing more expensive so buy it now to gain from fixed monthly rates and the moderately low premiums being offered at present. Let us hope that you never need it, but data indicates that unfortunately many of us will.

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Life Insurance, Critical Illness and Permanent Health Insurance should all be considered by people who have a wife/husband or children or anyone dependant on them for financial security.  This article will help you understand what’s available and what will be relevant to you.

It is shocking but a fact that 1 in 3 of us will be ill with some form of cancer before before the age of sixty five. Kirsty Hughes,a consultant at Fiona Price & Partners,a firm of Independent Financial Advisors, says “”These are not great odds, so protection insurance is very necessary” Life Assurance is the most widespread insurance taken out, though it is questionable as to whether it is the most necessary.  Life cover is indispensable if you have a husband or wife or children but not if you are unattached as it pays out after your death.  Many people think that they can’t afford take out Life Cover but the reality is that they cannot afford not to have it if they have a wife and children to support and protect.  P.P Coles a firm of Independent Financial Advisors reveals in a current survey that twenty four per cent of people with children don’t know if they have Life Cover or not and 25 per cent don’t have it.

Many business packages incorporate Life insurance but they are by and large not enough to grant an income for a husband or wife with children and cover the mortgage off.  A standard rule is to insure yourself for twelve times your annual income.

Tesco Finance’s investigations have revealed that over the last eleven years the average cost of Life Insurance Cover has dropped 43% merely because people just happen to be living longer due to some extent to medical progress allowing sick people to recover from sicknesses that, at one time, would have been terminal. Those who already have life insurance cover are probably not aware of this element and do not stand to gain anything unless a claim is made, so ought not to feel that they have to stay with their present insurance company – at this moment in time there are much better deals around.

On the other hand, Critical Illness and Permanent Health insurance payments are rising for the reason that people are surviving severe illness  and making claims on these policies.  These types of insurances are extremely vital and ought to be accounted for if possible specially if there are no dependants. Maybe you should ask yourself the question, can I afford not to have an income?  For many  of us the response is no and everyone should have income protection.

Permanent Health Insurance pays out a tax-free income which is worked out on a percentage of your salary for ‘non-critical’ as well as critical illness and for the complete length of time that you cannot work.

Critical Illness Insurance Cover, should you unfortunately become terminally ill will settle a tax-free lump sum, which   help to reduce money worries or provide for any changes that may be needed if your mobility was to be affected.  Statutory sick pay (SSP)doesn’t pay out enough money to relieve the financial impact that serious illness can produce.

The insurer calculates a payment on your risk profile.  If you have a family history of scritical illness or drink excessively or smoke a few cigarettes a day your premium will be higher.  Premiums are gauged on the individual person but if one or more of your family have been critically ill, particularly younger than the age of forty eight, this could increase your payments by forty nine per cent.

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Ian Marsh, a Director of investments at Brighton-based financial adviser Peel Townsend Financial Services, warns that it is very irresponsible of people not to have Life Cover and/or Critical Illness Insurance as he maintains that life has 2 main dangers – either being alive too long and passing away too early.  “Its imperative to have some insurance in place – especially if you have got young children,” he states. “These days you must construct your own little welfare state because nobody else is can do it for you.”

Justin Peters at LifeSearch says now is the right time to buy such plans as there are some very reasonable premiums about owing to the fierce competition for business within the market. “The cost of life insurance has fallen – dropping about forty per cent in four years. It has never been so cheap,” he states. “The critical illness insurance market paid out on 85 per cent of claims in 2006 – increasing from eighty per cent  the during the last year.”

Be aware of what insurance cover you already have before you take out any more.  Do you already have investment policies or does your company pension plan give you any cover?

The best way to calculate how much insurance you will need is to work out how much you would need to have the same level of living over a year and then times it by 24 years.  The minimum amount required should clear all outstanding debts and provide a lump sum for all your dependants.

Make sure you get a really good deal

When making a decision on your insurance policy it is very important to read the manual that many insurance companies have of the conditions and illnesses that they deal with. It will catalog everything and should be strsightforward and simple to grasp.  You will also want to review the documentation of the crutial features of the policy which will take account of all exclusions and benefits.

When people take on the responsibility of a homeowner loan they are usually advised to take out critical illness insurance but should research the market and not just take the first insurance policy proposed.

If you start paying these premiums when you are younger they are a great deal cheaper, distinctly different to leaving it until you are older, when cover increases quite markedly.

Insurance payments can also be lowered by quitting smoking cigarettes.  April Holmes, manager of protection insurance at Thisismoney says ” as well as giving a longer and healthier quality of life, giving up smoking can save people a vast amount of money.”

If you quit smoking you can knock as much as a 1/3rd off life, critical illness cover and income protection insurance premiums because the evidence that we now have proves that smoking can trigger serious illness and intensifies any other existing health conditions.

If your circumstances change you may have to alter your policy.

Under no circumstances think that once you have bought your insurance policy that you can just carry on with your life and forget about it. constantly be very aware of the insurance policy you have and ensure that, should your circumstances alter, or, is about to alter your policy must accommodate these revisions.  Perceivable examples are moving jobs, or or maybe you would like to have more children; often think about everything that may put up your living expenses and would need to be covered if you cannot work.

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