A Guide to Critical Illness Cover - 2011

by Ben Heffer
Insight Analyst - Life & Protection

July 2011

This guide provides an update on developments in the critical illness industry and outlines how advisers can illustrate the need to clients.

The need for protection is as great as ever. One third of households (8.5 million) wouldn't be able to cope financially if they lost their main source of income, while only 12% of the population have critical illness cover and only 7% have income protection.

While take-up levels are low, the awareness of critical illness and income protection is quite high, at in excess of 88%. If consumers are aware of their need and aware of the solution, all that may be needed is for advisers to make a strong recommendation to buy.

After the Retail Distribution Review (RDR), we may see more advisers taking an interest in protection, however it remains to be seen whether the sector can reach out to those people outside its traditional client base.

Our guide to critical illness cover seeks to identify opportunities for advisers and gives guidance on how to make the need for critical illness cover real for clients.

Areas covered include:

  • Industry developments
  • Provider movements, exits and entrants in the critical illness industry
  • How to establish the need for critical illness cover with clients
  • Critical illness cover and its relationship with other protection products
  • Critical illness definitions and ABI model wordings
  • How to restore value and confidence with clients

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