Of course, the money will not bring your health back, but the lump sum will definitely make your life easier.More and more people suffer from serious conditions such as cancer or heart diseases. However, thanks to the development of medicine and regular tests, these diseases are often diagnosed at an early stage. In the past, people used to die from cancer or heart diseases. Today, they are treated. However, those who recover from their condition are often unable to work again and the recovery can be challenging and expensive.
Critical IllnessPays the sum insured on a diagnosis of a specified serious illness covered in the policy. With this sum, the insured can be treated at private health care facilities or simply live without worrying about their bills. Only some forms of cancer, heart attack and stroke are covered by critical illness insurance policies. Here are some payment statistics based on 2018 data from AVIVA* Critical Illness claims summary
- 58,4% of Critical Illness claims were cancer related!
The top four illnesses claimed for: 1. Cancer 2. Heart attack 3. Stroke 4. Children's benefitIn 2018, £5,000,000 was paid in child cover claims ** (children up to age 21). The average value of children's benefit paid was £18,954 Critical Illness claims paid by gender: Female: 71,2% of claims were cancer related! Male: 50,1% of payments were related to cancer, whereas about 19% of claims were due to heart attack. 53,3% of cancer claims made by women were due to breast cancer. 20,6% of cancer claims made by men were due to gastrointestinal cancer. 38,1% of all critical illness claims were in the age group 40 - 49 for both male and female. The average payout from critical illness claims was £74,982
Income ProtectionIt can take time to recover from an illness or serious injury. If incapacity for work results in the loss of income (not all employers offer company sick pay), it could have a negative impact on the financial situation of you and your family. Imagine the situation when your salary no longer covers the family financial needs but your spending unfortunately remain at the same level. Income Protection protects your income in case of incapacity for work. It guarantees you a tax free monthly income. Examples of Income Protection claims Statistics based on 2018 data from AVIVA*.
- 26,5% of Income Protection payments in 2018 were made due to mental health conditions.
The top three reasons for Income Protection policy payments: 1. Mental health conditions 26,5% 2. Musculoskeletal conditions 14,9% 3. Cancer 11%Average age at incapacity - 44 years 32,7% of claimants aged under 40 - 46% 67,3% of claimants aged 40 or over - 54% Average length of claim across all customers in claim during 2018: 5 years *source for claims statistics: Individual protection claims report, Spring 2019. https://www.aviva.co.uk/adviser/documents/view/pt15943c.pdf
** combined AVIVA and Friends Life claims