Critical illness claims up 73%

CRITICAL illness insurance claims have risen by 73% over the last four years and in 2004 half of all claims were cancer-related.

Figures released by Bank of Ireland Life yesterday also show that 32% of claimants were under the age of 40 and the company’s marketing drive urges people to prepared for the unexpected

The findings also revealed that the amount has increased from €5 million to more than €12m over the last four years - an increase of 140%.

The figures show that in the past year, almost 50% of claims were cancer related with 20% accounting for heart-related claims.

The bank’s figures show that the average age of a typical critical illness claimant was 45.

Bank of Ireland Life underwriting manager Noel Finnegan said: “The under thirties are poorly represented when it comes to protecting themselves against critical illness. People often perceive that these illnesses only happen to older people, however this clearly isn’t the case. Critical illness can strike at any age and we would advise people to act now and take out this cover. The younger you are when taking out a policy, the proportionally lower your premium will be,” he advised.

The figures show that there was a 28% increase in the total number of claims paid out in 2004 when compared to 2003

“When comparing female to male claimants, 64% of female claims are cancer related compared to 38% of male claims being cancer related. However, 29% of male claims are heart related compared with 6% of female claims being heart related,” the bank said.

Mr Finnegan said: “Undoubtedly a lump sum to pay off the mortgage would prove very useful at such a difficult time; however have they considered costs beyond the mortgage?

“Many people fail to recognise the serious financial impact suffering a critical illness can have. Of those that are insured many are underinsured. Females particularly so, as the monetary impact of a homemaker suffering a critical illness is often underestimated. This is reflected in the average sums assured for males versus females and is reflected also in the claims paid with 61% accounting for males and only 31% accounting for females,” he added.