Virgin Money Life Insurance has launched a new form of limited critical illness cover-Virgin Money Cancer Cover. Costing from as little as £5 per month, the company claims that customers could save up to 45% compared to an average critical illness quote.
Virgin Money is addressing the gap in the market for simple, affordable protection against a backdrop of high risk of cancer and worryingly low cover levels. People in the UK have a one in three chance of getting cancer in a lifetime and a one in six chance of getting cancer before the age of 70.
A new ‘Cost of Cancer’ report from Virgin Money, found that 65% of people were burying their heads in the sand and had no formal financial arrangements in place to cope with maintaining their monthly income levels if cancer stopped them from working.
The report, also found that 94% believe that anyone could get cancer irrespective of lifestyle. One in ten hadn’t given the matter of coping financially with cancer any thought, and over half would rely on a combination of savings, loans and support from friends and family to help cope financially. Half (50%) agreed that being in a comfortable financial position would help them focus on recovery if they contracted cancer. Four in ten worried that cancer would stop them from working and would impact on their finances.
Virgin Cancer Cover protects men and women and features staged payments. The staged payments allow a quicker payout of cash upon diagnosis of cancer. The cover will pay a lump sum benefit of up to £500,000, to spend on whatever they choose, which offers individuals and their families a way to help maintain and protect their financial quality of life while better enabling them to focus on their treatment and recovery.
Staged Payouts
Stage 1 (early cancer) – pays out 10% of the amount of sum assured in the event of diagnosis of an early stage cancer.
Stage 2 (intermediate cancer)– pays out 25% of the sum assured, less any early cancer payment related to the same cancer (e.g. 25% is reduced to 15% if a stage 1 claim has already been made).
Stage 3 (advanced cancer) – pays out 100% or any remaining balance (e.g. 100% reduced to 75% of the sum assured if a stage 1 and/or stage 2 claim has already been made).
Virgin Cancer Cover can be used in any way the customer wishes. It could be a holiday, helping to meet regular expenses or paying for the additional costs associated with their illness. For example, help fund the cost of seeing specialists, or allowing a relative to take time off from work to assist during treatment and recovery.
Commenting on the launch of Virgin Money Cancer Cover, Sir Richard Branson, Chairman of Virgin Money said: "We’re hammering down the cost of cancer protection and offering the most comprehensive cancer cover available in the UK. Our severity-based approach links the benefits to the impact of the condition, which allows such keen pricing. The staged lump sum payouts mean quicker payout of cash. This will help our customers to focus on recovery and not worry about their finances. ".
Virgin Cancer Cover is provided and administered by insurance company Scottish Widows.
Virgin Money is Virgin’s financial services arm and was established in 1995. Virgin Money has over 1 million customers and offers a wide range of financial products.
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News update: January 2006
