In recent years sales of critical illness insurance have flagged. The primary cause will be the huge 70% increase in premiums experienced during recent years. For many, critical sickness insurance has simply priced itself out of the market.

It’s not that essential illness insurance is a bad concept. After all it pays out a huge if the policyholder is diagnosed with one of the many critical illnesses listed on the policy and the policyholder survives at least 28 days from diagnosis. (Note: some policies possess a 14 day survival period. ) Most policies have a huge list of covered illnesses although about 60% of claims are for cancer — not surprising, as 1 in every 3 people will develop cancer sometime within their lifetime. In fact when you look at the idea of Critical illness insurance you can easily make a case that everyone living on earned income should have a policy. Is actually designed to give you a pot of funds to live on if serious illness prevents you from working normally.

Premiums have increased dramatically since medical advances have meant that lots of illnesses that proved fatal in past times are becoming quicker to detect plus easier to treat. Hence insurance companies have found themselves paying out earlier on claims and on illnesses which are not necessarily debilitating — which was the original purpose of critical disease insurance.

To give you a better idea of the type of illnesses we’re talking about, here is a typical list:

Alzheimer’s Disease

Aorta Graft surgery

Bacterial Meningitis

Loss of sight

Brain Tumour

Cancer

CJD

Coma

Coronary Artery by-pass surgery

Coronary Artery Angioplasty

Deafness

Heart attack

Heart Valve replacement/repair

HIV/AIDS resulting from blood transfusion

Inability to perform your duties of occupation

Kidney failure

Leukaemia

Loss of limbs

Loss of speech

Main organ transplant

Motor Neuron illnesses

Multiple Sclerosis

Occupational HIV/AIDS

Paralysis

Paraplegia

Parkinson’s disease

Stroke

Third Degree burns

Any illness that will results in Total and Permanent disability

Insurance companies have at last realised that they are not going to get anywhere marketing plans that people can’t or won’t afford, and where the companies can’t afford to lower prices. So it now appears as if insurers such as Scottish Widows are considering a break through – breaking the cover so that the prospective policyholder can specify which illnesses he or she wants to insure against. It’s a form of “menu pricing” – cover for every illness would have a price and you simply select which illnesses you want to make sure against.

Whether such insurance proves popular will very much depend on the cost. For example , if cancer accounts for close to 60% of current claims, a person would expect the premium for addressing cancer alone to be about 40% cheaper than a full strength essential illness policy. We’ll have to wait around and see.

If you’re interested to find out how much a standard critical illness policy would certainly cost you, you’ll find it cheapest on the Internet.
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The very best sites to look out for are the independent discounting brokers who deal with all the big insurance providers. These brokers can search the whole market for you, come up with the least expensive insurer, and discount their price. Try to use a broker who’ll also give you personal advice on the phone as some policies do vary in the scope of their cover.