Many of us tend to think of critical illness cover as something we won’t need to worry about until later in life – but new research from RGA suggests that this may be unwise. The results of the research, which looks at the percentage of life insurance and critical illness insurance claims by age group, indicated that 8% of life insurance claims, and 24% of critical illness claims, are made by people ages 25 to 40.
Planning for the unexpected
This is perhaps higher than many of us would expect, but unfortunately serious illness can affect people of any age and it’s a good idea to ensure that your dependents would be provided for in the event that you were unable to work due to serious illness. What’s more, critical illness cover is usually cheaper for younger people as they are seen as lower risk by insurance companies, so it makes sense to ensure that you buy your cover at the earliest opportunity.
Phil Jeynes, Head of Account Development at PruProtect, commenting on the findings, said: "This data shows us the importance of putting cover in place as early in life as possible. Policies such as Serious Illness Cover pay out on diagnosis of even early stage cancers or less severe heart attacks.”
Kevin Carr, chief executive at the Protection Review, echoed Jeynes’ view, and warned that putting off buying cover until later in life could be a costly mistake. "Based on this new data around one in every 12 claims for life cover in the UK occurs before the age of 40” he added, “which is probably higher than most people would expect. For critical illness the number rises to 1 in 4 which shows that putting off buying cover until we are older can be counterproductive."