Archive for July, 2012

There are many advantages of Critical Illness Cover as a form of Life Insurance, however, it’s important to understand why there’s the need for an additional private healthcare insurance policy in the first place. In the UK many people rely on the state to look after them in the event that a health issue arises. A person also hopes that an employer understands, should an illness suddenly develop, and that their position in the company will remain open.

Critical illness coverOnce an illness is diagnosed, especially one that is life threatening, many will worry about the illness itself rather than having to pay the bills or trying to stay in work. The stress of a sudden diagnosis can affect people mentally but it’s the financial strain that many forget to insure against. Indeed it’s said more people have insurance for their pets rather than critical illness cover for themselves.

Both aspects of life insurance cover and critical health insurance are a form of protection for you and your family. Whereas the former pays out a lump sum of money should you pass away and will help your family financially. The cover won’t help you in the event anything occurs before you die. This leaves the policy itself a little wanting.

The Benefits Of Critical Illness Cover
The benefits of having specific insurance cover should you be diagnosed with a serious illness far out weigh any reliance you have on the goodwill of an employer, or that of relying on the state to keep you and your family financially secure in the short term. Critical illness insurance provides for a cash pay out when an illness as described in the policy details is ascertained.

Life cover is a hidden reality of the modern age. The important part of any insurance policy is to ensure it benefits you or your loved ones when required. Statistics suggest that one in three people will be diagnosed with a type of cancer. The cover also pays out on heart attacks, stroke or kidney failure. It’s worth comparing illness insurance, some insurers pay out only on severity, others a percentage of the lump sum due depending on a sliding scale.

While not many wish to consider becoming ill and claiming, the ability to pay the bills, the mortgage, receive an income for the duration will obviously be of help and that’s exactly what critical illness cover aims to achieve. There’s surely a kind of irony that one would only insure one’s self against death and not an illness which you may well recover from and live several years after any serious illness diagnosis is given.

Critical health insurance can be merged with other insurance policies to provide better cover for your situation. While a lump sum is typical, an insurer can also payout an income over a given period or pay an amount to reflect the decreasing term on a mortgage. Once again, life insurance only pays out a lump sum on your death, a critical illness insurance policy helps you and your family get through a tough period while you fight to stay alive.

There is however, one more point when considering an insurance policy to cover serious illness and it stands out as a reminder to always read the terms and conditions of any policy. Some critical illness insurance policies only payout if you survive 28 days after diagnosis. In which case, there’s an argument for having both types of insurance running simultaneously.

A recent announcement by the Children’s Mutual has stated that the friendly society is planning to move all of it’s savings into it’s Canadian owned rival Forester Life.

This will result in almost 1 million Child Trust Fund holders having their funds transferred across to the rival society without having a say on the matter.

The Children's MutualIt has been rumoured that the Children’s Mutual have been looking for a buyer for quite some time now. It is believed that the cost of running their CTF accounts is unmanageable and the scrapping of the child trust fund by the government compounded their misery as this was their main source of new business.

Formerly known as ‘Tunbridge Wells Equitable Friendly Society’, The Children’s Mutual Society has said to have ‘entered into exclusive negotiations’ with it’s rival Forester Life.

Currently, more than 927,000 customers hold a child trust fund with the society, a majority of them by taking advantage of the government vouchers but there are fears that CTF accounts will perform poorly from now on due to investment providers concentrating on the new Junior ISA Accounts which where launched back in November 2011.

Many people now believe that customers should be able to transfer their Child Trust Fund to a Junior ISA and take advantage of the larger investment options potentially open to them and this news will only strengthen the call of many people and organisations.

However, Forester Life have announced that the takeover should be beneficial for it’s new members as they hope to drive down the cost of managing the funds by economies of scale and it is also worth noting that the money already set aside my the Children’s Mutual for managing the funds would be released to help boost the final or terminal bonus of the Child Trust Fund.

How ever you look at it, surely the coalition government must look more closely at the possibility of allowing CTF holders to transfer child trust fund to a Children’s ISA?

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