| Critical illness insurance offers cover for certain | | | | knowing that they are, in fact, likely to be paid |
| specified conditions such as cancer, heart | | | | out, the decision could be left open to argument |
| problems, kidney failure, loss of limbs, etc., The | | | | regarding the grading of the level of severity of |
| cover is quite simple and straightforward, in that if | | | | the condition: therefore consumers could be |
| you are diagnosed with one of the severe | | | | worried and confused about the final amount |
| illnesses listed in your policy a payment is made. | | | | agreed. What insurers would grade as relatively |
| On average 35 conditions would be considered as | | | | minor may appear very different to someone |
| falling into this category with most companies. | | | | newly diagnosed with a condition. It could be a |
| There is just one company, Virgin, who vary the | | | | case of accepting the fact that a smaller |
| cover by offering severity-based payments when | | | | payment is better than nothing at all, but it could |
| cancer is diagnosed. Obviously with an illness such | | | | also be that the payment doesn't match |
| as cancer, there are various degrees of severity | | | | expectations. It would be advisable to make sure |
| and with increasing success rates in the treatment | | | | that you thoroughly understand the full implications |
| of this disease; this seems a fair way of dealing | | | | and terms of the policy before considering taking |
| with the situation. | | | | cover. |
| The Financial Services Authority are not certain | | | | Conventional critical illness cover, for a typical 30 |
| that people realize the limitations on the number | | | | year old family man, who doesn't smoke would |
| of severe medical conditions covered by their | | | | be around £24 per month, whereas it could |
| policies and that they could be in for a nasty | | | | more than double with this new plan. |
| awakening if they assume that every serious | | | | It may be that critical illness cover is not the |
| illness will be covered. | | | | product for you. For financial security for your |
| With this in mind, the Prudential have brought out | | | | family, in the event of your death, life insurance |
| a policy which lists 140 severe conditions, which | | | | would be the most important planning tool. To |
| will be covered by their plan. Rather than the | | | | cover outgoings if you are incapable to working, |
| "black and white" decision made on diagnosis, this | | | | income protection insurance could be useful. This |
| promises a grading of the payout according to the | | | | offers cover for common ailments too, and not |
| severity of the condition. A spokesman for the | | | | just the critical ones. |
| Prudential says the policy, named the Prudential's | | | | For advice and help on the type of insurances |
| Flexible Protection Plan, will mean that more | | | | available, the easiest course of action is to find an |
| payments will be made to insurers with debilitating | | | | internet broker, who'll be able to answer your |
| illnesses, whose illnesses would otherwise be | | | | questions and come up with a range of quotes |
| outside the scope of the insurance and who would | | | | with a minimum of trouble to you and ensure that |
| then get nothing at all. | | | | you arrange the insurance cover which is right for |
| An improvement then on "black and white", but | | | | you and your family. |
| could this leave a "grey" area instead? Apart from | | | | |