Under 50s make up 66% of illness claims

TWO-THIRDS of claimants under critical illness policies last year were under the age of 50, assurance company New Ireland said yesterday.

The Bank of Ireland-owned assurer paid out €6.6 million to customers who suffered serious illnesses. The under-40 age group accounted for 35% of all claims.

New Ireland said the figures showed people needed to take precautions to protect their wellbeing in the event of serious illness.

Noel Finnegan, New Ireland’s underwriting manager, said critical illness cover could not guarantee future health, but it would help deal with the financial implications of being diagnosed with one of the illnesses that could be covered.

Mr Finnegan said the average age of claimants would surprise the large number of people in the country without critical illness cover.

The average age of male claimants was 45, while the average female age was 43. Seventy-eight per cent of claims by women were for cancer-related illness. Cancer accounted for 33% of male claimants, while 39% related to heart problems.

New Ireland said the state disability benefit of €124.80 per week was inadequate to maintain an individual’s standard of living in the event of serious illness. The company said medical insurance offered excellent protection against medical bills but that further cover was required to meet ongoing expenses, such as mortgages and credit card bills.

Mr Finnegan said the statistics were unpleasant but they served to highlight the importance of prudent financial planning.

He said six out of ten people in Ireland would be affected by a critical illness at some stage in their lives and many people were unaware of the cost of maintaining living standards.

Mr Finnegan said it was common for people to take out insurance to cover assets such as houses or cars and that it made sense for people to take out protection for themselves.