New research from Confused.com suggests the reasons why so few have taken out critical illness insurance, which pays out a lump sum if the person develops an illness or condition covered in the policy. Having some form of protection in place should the worst happen is important, relieving the anguish of money worries at a difficult time.
- Only 23% have critical illness cover
- Of those who have it, less than 1/3 (32%) have ever switched provider
- One in five claim they would manage with employer based payouts or state benefits if they became too ill to work
- 25% claim that it's too expensive and a waste of money
- 25% admit they don't understand it and have never considered taking it out
- 4% say they would live off savings
- 14% say they are just too young to worry
Statutory sick pay is just £79.15 a week, payable for 28 weeks; the average household spends £471 per week; the average critical illness policy payout is £73,1943; and 70% have less than £5,000 in savings
Matthew Lloyd at Confused.com says, "Critical illness may not be the right type of insurance policy for everyone, the reasons given for not taking it are worrying. Many people say they will be reliant purely on their employer and the state in the event that something goes wrong, but perhaps haven't understood how little this could be in comparison to the cost of running their household. Others seem to have dismissed it as a waste of money or not even considered it. With so little savings to fall back on it is important that people consider how they would manage and plan for an illness or they may find themselves worrying about finances when they should be focusing on their health."