Critical illness pay-outs double in four years

CRITICAL illness insurance payouts have doubled in four years.

New Ireland, a subsidiary of Bank of Ireland, said that last year it paid out €9 million to people who have suffered serious illnesses, such as cancer or heart disease, and that this figure was double what it was paying out four years ago.

It said the vast number of people have no policies in place to cover critical illness and they are doing so at their own risk. Research carried out by New Ireland found that the number of pay-outs it is making rose by 30% in 2003 and the figure is continuing to rise.

Noel Finnegan, underwriting manager with New Ireland, said its figures show that the average age of claimants was 46 and one-third of claims were made by people under the age of 40.

“I would advise anyone taking out a policy to pick up the phone to us. The peace of mind and security of knowing you have adequate coverage is invaluable,” he said. He said many of us believe that we would never suffer from a severe illness and as a result neglect our financial position.

“There are some enduring misconceptions about life assurance and critical illness products.

“In fact there seems to be something in the Irish psyche, which prevents us addressing potential negatives in our lives.

“Many of us believe it will never happen to us and put off considering critical illness cover for as long as possible. Potential illness is something we put to the back of our minds.

“Our simple message is why not think about it, and address it by making adequate provisions. It will give you peace of mind and, in the unfortunate event of a serious illness striking, will help ease any financial concerns,” he said.

The survey also found that two out of five people did not really understand life and critical illness products and that four out of five have made no such provision for critical illness.