Are You Playing Life’s Lottery?

This is an article is about the importance of Critical Illness cover – Are You Playing Life’s Lottery? By: Justin Phillips – Company Principal and Mortgage Adviser at Open Vision Finance

I have been asked to contribute to our regular blogs, and this week, I’m afraid its going to be a touch short and a touch blunt.

Why short? Well it doesn’t take long to say what I have to say about this! Why blunt? It’s a struggle to sometimes communicate just how important this subject is and feel there is a time and a place to be blunt about it… so here goes..

This weekend, I learnt a friend (age approximately 40) who runs his own business, wife also works for the business; they have 2 children and own their own home has been diagnosed with a serious illness.

To cover their mortgage against Life and Critical Illness, at a guess would have been around £160 per month (a lot I hear you say.. no, not a lot at all – let’s get real here).  The sad news in this instance is that he has been diagnosed with an aggressive cancer with very little treatment on offer… in fact the best which can be offered may extend his life from 8-12 weeks for an extra month or so; to say this is a sad situation is an understatement and makes me feel sick to the stomach and in honesty a touch emotional.

Why am I sharing this with you? In this particular instance the family decided to cancel their Critical Illness insurance prior to the illness being diagnosed, why?  Because his father thought it was a waste of money…  and I imagine he did too.  No blame apportioned here in the slightest, this is a common misconception and I hear it week after week.

In the instance of the above or many similar scenarios, not only does the family have to cope with the life changing situations happening, but meanwhile the business has to be closed, also closing any line of income… so in addition to the devastating health circumstances, they now have to worry about how to pay a mortgage, possibly losing a home, with a family in the mix and the grief dealing with the short/medium term future and illness.

If anyone thinks the above is an isolated incident, don’t kid’s not… As a company, we see this month in, month out and considering I see regularly, more money being spent on mobile phone insurance than on life insurance, or more money spend on pet insurance than Critical Illness cover for yourself more money on Car insurance… the list is endless… I don’t know anyone who would drive their car around uninsured, yet I know hundreds not bothering to insure themselves… what is more important? If not for you, consider the implications to your partner or family.

As a nation, we are so massively underinsured for life, Critical Illness or Income protection it really is mind blowing… here is something worth thinking about…

1 in 2 people born after 1960 will be diagnosed with cancer

I’m not going to scare anyone with more statistics… this says it all.

If you don’t have cover in place, get it!! If you do, consider if it’s enough, and be realistic.

A monthly premium which most people won’t even notice will look after you should the worse happen and the peace of mind alone is worth the relatively small amount of money.

Should you hear ‘Critical Illness Doesn’t pay out’…

‘Last year we helped more customers than ever before, paying over 97% of all individual protection claims’. (Aviva)and the reasons for the small 3% not  being paid was non-disclosure (generally not telling the truth about your health) or a ‘Non qualifying illness’ note to self – it won’t pay out if I break my big toe!

I’m not flippant about how much insurances cost and I totally appreciate its all about budgeting, so if you don’t feel you can afford much, have a think about what you can afford.  Something really is better than nothing.

It’s one of those jobs most of us think we will get around to, but never do… so if I can ask one thing, PLEASE get a quote for some level of cover and have a conversation with your loved one/s, be bold about what you are prepared to do, and do it!!



Should you require any advice around your critical illness cover and protection, please get in touch with us!

01823 444022

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