Ronan’s Monthly Blog – Review of the cost of Serious illness cover could be on the way.
Up to date news on Life and Serious illness cover, average cover, claims and costs review.
We recently attended a seminar from one of the leading providers of Life and Serious illness cover. The session highlighted their experience on the average pay out on claims, the age of individual policy holders making the claim, Serious illness cover updates and indeed interesting reasons to have your ARF transferred to your next of kin correctly.
A lot of Irish males like telling me and I quote “but sure she’ll get the house, what more would she want”. This statement is usually proclaimed by prospective clients when we are doing a review of their life cover (for mortgage and for their family). Try running a home and kids, with all the life- style expenses without one of the household salaries? Such a loss could see a house loose €35,000 a year, that being the average industrial wage. Do without this income for 10 years would mean a shortfall in income of over €350,000. You would still need the roof over your head therefore that simple statement does not ring through. Think long term and look at the bigger picture. Family life assurance cover should be in the region of at least €350,000 irrespective of your mortgage cover.
Yet at this seminar the Life company stated that the average cover on their claims in 2018 was €100,801. Furthermore, the most common amount of cover on policies is just over €50,000. If you are in this space with this level of cover for your family, you really need to review your policy and cover. The cost of life assurance in Ireland is realistic and provides good value for money.
Serious illness cover has been in the Irish market since 1993 and has developed from contracts offering between 15 to 30 illnesses being covered to contracts now that provide as much cover as reasonably possible. Fringe additional benefits such as hospital cover, partial payments and child cover are now part of most providers cover. Note that the cover is based strictly on the listed illnesses and the definitions provided in their policy documents. With the advances in medical provision, thankfully, early diagnoses and screening (notwithstanding the cervical cancer scandal) illnesses are being diagnosed earlier and people are surviving. The cost of the cover is now under pressure, with most insurers stating that a likely increase in premiums could happen in June/July of this year. Some providers are now even in a tender process with their re-insurers to strive to keep any increase as low as possible. Most agree that any increase will be in the region of 15%- 25%. Therefore, now is the time to act.
The claims paid in 2018 for Serious illness cover by our host company illustrated the fact that the average claim was made by 51-year olds and were made up of the following
1. 66% of male claims related to cancer
2. 16% of male claims were for heart and stroke related illnesses
3. 81% of all female claims were for cancer
Notably 50% of the female cancer claims were related to Breast cancer.
Please do think of the life and serious illness cover you have in place for yourself and your family. We will be delighted to review and recommend a suitable product that suits your needs and requirements.
You can contact us at email@example.com and at 051-391777 or 0872765147
# Figures provided by Zurich Life