12 February 2003: Over half the protection policies sold to independent financial adviser’s (IFA) clients include critical illness, 54% but less than a quarter have income protection, 23%, according to research by Liverpool Victoria.
Rye Mills, director of the intermediary division said: “With UK inhabitants 2.5 times more likely to suffer a critical illness such as a heart attack, stroke or cancer, than die before the age of 60, and over six million people on long term sick leave, it makes sense for financial advisers to review clients’ needs now.”
He acknowledges however that it is hard to balance these needs with affordability. And he went on to say that he expects the sales of CI to rise “substantially” in the future, as a combination of longer life expectancy and improved medical treatment begins to influence financial planning.
This is despite the increased premiums that are likely across the industry this year as reinsurers take account of the likelihood of earlier diagnoses within their overall risk.
By Barbara Cockbur