Moneysupermarket.com urges people to buy critical illness cover before premiums rise

MONEYSUPERMARKET.COM URGES PEOPLE TO BUY CRITICAL ILLNESS COVER BEFORE PREMIUMS RISE People are three times more likely to contract a critical illness than die before 65 Compare the cost and cover of more than 100 critical illness policies on moneysupermarket.com moneysupermarket.com, a website where consumers can compare the cost of personal finance products and apply online, is urging people to take out critical illness cover over the next six months because premiums are set to rise and the number of illnesses covered by policies is set to shrink. Critical illness insurance is a relatively new form of insurance - introduced fifteen years ago - which pays out a lump sum on diagnosis of a critical illness and the policy holder has the freedom to use that money as they please - for private treatment, pay off their mortgage or make modifications their home. Policies vary with the types of illnesses that are covered, but most will cover cancer, heart attack, strokes and HIV/AIDS. Over the last 12 months the cost of premiums has come down for a variety of reasons, mainly because competition in the critical illness market is increasing, plus diseases such as HIV are now not considered as being as endemic as originally expected. However, the downward trend in the price in critical illness cover is now set to end for a number of reasons. With growing life expectancy and medical advancement, people now are three times more likely to suffer from a critical illness than die before the age of 65. Moreover, medical developments have dramatically improved chances of surviving a critical illness and so insurers are now facing more payouts than originally expected. As a result insurers are looking at the possibility of reducing payouts for less severe critical illnesses and also amending the list of illnesses generally covered by critical illness cover.* The ABI is currently working on a revised statement of best practice and redefinition of certain critical illnesses such as some forms of cancer. This could lead to reduced payouts for certain critical illnesses or none at all. Richard Mason, Director, moneysupermarket.com commented: "We launched the critical illness channel on our site a year ago and our research has shown that premiums have been falling steadily since. However, many signs point to critical illness cover becoming more expensive and less comprehensive in the near future and consumers need to act now to get the best deal. If ever there was a time to buy it's now. Existing policyholders should also check that they are not paying too much, as rates have fallen and they may be able to shop around and get a more competitive and/or more comprehensive deal." Consumers can compare the cost and cover of more than 100 critical illness policies and apply online by visiting www.moneysupermarket.com. Policies start from £24 a month for a policy paying £100,000 lump sum for a 35 year old male non-smoker. The website also has a useful guide to critical illness, including details of illnesses covered. For further information please contact: Richard Mason, Sales Director, moneysupermarket.com Tel: 01244 665700 / mobile 07879 884529 or richard.mason@mortgage2000.co.uk Or Rebecca Mayo / Jane Budge / Karen Brunskill, Lansons Communications Tel. 020 7490 8828 or rebeccam@lansons.com or janeb@lansons.com or karenb@lansons.com Notes to editors: Critical illness cover Although policies vary, critical illness insurance usually covers the following illnesses: Alzheimer's disease, angioplasty, aorta graft surgery, benign brain tumour, blindness, cancer, coma, coronary artery by-pass, heart attack, HIV/AIDS (under certain circumstances), deafness, heart valve replacement, kidney failure, loss Of limbs, major organ transplant, loss of speech, motor neurone disease, multiple sclerosis, paralysis/paraplegia, Parkinson's disease, permanent total disability, stroke, third degree burns. * [add in source of stats] About moneysupermarket.com: · Moneysupermarket.com provides market wide information on mortgages, credit cards, personal loans, current accounts, utilities, savings accounts and cash ISAs and business banking. It was the first company to introduce the mortgage auction to the UK, where businesses bid for house- buyers' business. · Moneysupermarket.com was launched to consumers in December 1999 by the Mortgage 2000 Group (M2). ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/09/30/20020930BIT00590/wkr0001.doc http://www.waymaker.net/bitonline/2002/09/30/20020930BIT00590/wkr0002.pdf