IEP Financial: The importance of Critical Illness cover

Ian Poysden, Managing Director of IEP Financial Ltd, looks at the importance of Critical Illness cover – as it doesn’t just happen to someone else

Suffering from or being diagnosed with a critical illness such as heart attack, stroke, cancer, or multiple sclerosis can be difficult to cope with at the best of times, but the financial consequences can be much more devastating, especially for your family and loved ones.

Critical illness insurance is designed to ease the financial pressures by paying a tax-free lump sum.

The good news is advances in medical technology mean that life-prolonging cures and operations are becoming increasingly available. Whilst there has been little increase in the incidence of Critical Illness (the number of people who get a Critical Illness in a given time period), many more people are now surviving these conditions – so the prevalence of Critical Illness has increased.

Regrettably, however, it is clear that, for a large proportion of those who do survive a Critical Illness, a certain degree of disability will result. This affects the individual’s ability to pursue their normal activities, including, of course, their ability to work.

The following statistics indicate the fundamental need for Critical Illness cover in the UK – a need which is illustrated by the strong growth in Critical Illness Insurance policies over recent years, and which looks set to continue into the foreseeable future.

The facts at a glance (UK only)
Nearly one in three (32%) men between the ages of 40 and 70 will develop a critical illness, and of these;
• 15 will develop cancer
• 10 will have a heart attack
• 5 will suffer a stroke
• 2 will have Coronary Artery By-Pass

One in four women between the ages of 40 and 70 will develop a critical illness-that’s 25 in every 100 women. Out of those 25 women;
• 17 will develop cancer
• 3 will have a heart attack
• 3 will suffer a stroke
• 1 will have Coronary Artery By-Pass surgery
• 1 will develop Multiple Sclerosis

Critical illness cover can provide cash to allow people to pursue a less stressful lifestyle while they recover from illness, or use it for any other purpose. It provides a welcome financial boost at a time of emotional stress and financial hardship.

All this points to the need for professional financial advice. Critical Illness policies do vary and it can take an experienced eye to evaluate the best policy for your circumstances and pocket. Therefore, it is essential to sit down with your financial adviser who will discuss your protection requirements, to fully understand your overall financial circumstances and to see if critical illness is the best solution for you. IEP is authorised and regulated by the Financial Conduct Authority.

Ian Poysden is Managing Director of IEP Financial Ltd,
119 Church Road, Hove, BN3 2AF
Freephone: 0800 0436120
www.iepfinancial.co.uk