Standalone critical illness policies made less impact on the insurance market. Sales of around 18 percent may have been recorded during the year 1997. Out of this, around 50 percent may have been riders to term insurance while the remaining percentage may have turned out to be as riders of whole life. The average sum insured may have been GBP 48,000 on term insurance and GBP 64,000 on whole life insurance. The average monthly premium payment may have been GBP 370 and GBP 380 for each rider type. Moreover, critical illness cover can be considered as one of the most successful forms of insurance covers in the UK. The product has remarkably evolved since its arrival in the UK during the mid 1980’s. The Direct Sales Forces may have been the ones responsible for boosting critical illness cover sales in the UK during the 1990’s. Thus by the end of the year 1998, around 2.25 million critical illness policies could already counted in the UK. However, according to www.tickbox.net, it is believed that around 72 percent of people in the UK are yet to have a critical illness cover. Furthermore, if 72 percent of people do not have a critical illness cover in the UK may not necessarily mean that they are not insured at all. They might have taken another type of insurance like life of mortgage protection insurance. People as well might not be fully knowledgeable about the various advantages of critical illness cover. In addition to, people may also be unable to pay the premiums related to the benefits they want from critical illness insurance. Other reasons may exist to explain the fact why people chose critical illness cover in the UK. Around two thirds of critical illness sales may have been made in connection with mortgage. Many people may have added mortgage to critical illness policies to consequently obtain more benefits. Thus, in the event of critical illness the lump sum awarded might have helped paying out the outstanding mortgage balance. Self employment may have been another factor responsible for the boost of critical illness sales in the UK. This can be explained by pointing out that self employed persons may not be automatically protected by insurance as do company workers. Thus, the amount payable after occurrence of critical illness may then come to the help of the self Critical illness insurance may offer you a considerable amount as cover. Therefore, how much cover you want may depend on the amount of premium you are a capable to pay each month. It is important to point out that the critical illness cover premium payments may rely upon your health, age and sex. Other factors like whether you smoke or not, the amount and type of cover you want and the duration of cover may also be asked. Some critical illness policies may increase their premium values as long as the policy remains in force. The reasons for this increase may be explained in the key features leaflet of the policy. On the other hand, other critical illness policies may give you the guarantee that premiums may never rise.
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