Employee benefits packages have been scaled back over recent years, leaving many workers without proper critical illness protection, an insurance adviser has suggested.
Paul Litster, managing director of newcomer Specialists4Protection, said: “The economic difficulties over the past few years has seen many companies cut back on their employee benefits packages, and in many cases this has seen critical illness cover no longer being offered."
However, over the past 10 years 11 per cent of adults have suffered from a critical illness that meant they had to stop work permanently or for a prolonged period of time, but had no insurance cover for this.
According to research carried out by the firm, which launched in October this year, 14 per cent of men claim that this has happened to them, and the corresponding figure for women is 9 per cent.
Of those people who have suffered from a serious medical condition and had to stop work but had no insurance, 18 per cent said it had contributed to them losing their home as a result of this.
Mr Litster added: "If you have dependents and significant monthly outgoings such as a mortgage, having critical illness cover can be essential for many people."
Of the 748 people surveyed with children under the age of 18 and/or who are in a long term relationship, only 24 per cent currently have critical illness cover, which pays out a lump sum if you suffer from a medical condition listed on the policy.
In October, Specialists4Protection carried out research among brokers, which revealed 8 per cent of IFAs have stopped selling critical illness cover over the past five years because they wanted to focus on the more profitable investment management side of their businesses.
Quotes shown are for a 40 year old male who doesn’t smoke. Policy is £100,000 life insurance cover for ten years with a fixed premium. Example is for illustrative purposes only and was correct on 21/11/2016.
The most common form of protection, ordinary term life cover pays a lump sum to your family if you die within a certain time-frame. Most policies will also pay-out if you’re diagnosed with a terminal illness and have less than twelve months to live
Critical Illness Cover provides a cash lump sum if you suffer from a range of serious conditions within a set time-frame. The money is normally used to pay the bills and provide financial security while you’re on the road back to health
If something serious happens to stop you working - for months, years, or even for life – you’ll want to know you have financial security and that the bills are paid. Income Protection gives you just that, paying a percentage of your income all the time you’re unable to work.
The NHS is groaning under the weight of the UK obesity crisis and newer, more effective medical treatments for a range of illnesses often aren’t available. Private medical cover makes ‘going private’ much more affordable – giving you access to more treatments, shorter waiting lists, and first-class care.
Most company directors are savvy enough to have life insurance, but very few realise they can save up to 53% by taking advantage of a Relevant Life plan.
Group Life and / or Health Cover is the most cost-effective way to provide peace of mind and financial security for the families of your employees.
Key Person Insurance - often called Key Man Cover - is an insurance policy bought and owned by a business to protect its own interests. Cover is provided in the event that an important staff member is suddenly unable to work through critical illness and/or death.
Shareholder Protection Insurance is designed to give you peace of mind in the event that a shareholder in a Limited Liability Company, a member of a Limited Liability Partnership (LLP), or a partner in a partnership dies or is diagnosed as critically ill.
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