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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