Critical Illness Cover
Happily living your life can quite often get in the way of planning for the future.
While it’s hard to argue that this is a bad thing, there’s certainly cause to occasionally stop and think about what would happen, practically, if something were to drastically change your clients’ circumstances.
So, how do you approach this with your clients? Statistically you’re much more likely to be diagnosed with a critical illness than die during your working life. A non-smoking man aged 40 is 4.1 times more likely to be diagnosed with a critical illness than die before retiring at 65 years old. It’s a stark figure but a life-changing illness is likely to significantly impact their ability to work and therefore significantly reduce – or stop altogether – their earning potential.
In these circumstances, how would their family cope? How would they finance the day-to-day living costs? Could they survive for long on zero income?
As an ex-pat, they won’t have the same statutory benefits that may exist in their home country. In Dubai, for example, there is very little statutory sick pay (potentially as little as 45 days) and no free schooling. It’s not much of a safety net – it’s up to individuals to make sure they’re properly protected.
Many people tend to bury their head in the sand when it comes to this kind of thing. This reluctance to face uncomfortable issues explains why only 24% of people in the Middle East have critical illness cover.
Critical Illness Cover (CIC), which is available through IPME, promises a financial pay-out in the event that your client is diagnosed with a critical illness during the term of the product. This means they can concentrate on recovering, rather than worrying about whether they can pay their bills, mortgage and even whether they can continue sending their children to a fee-paying school.
It’s about peace of mind. If your clients knows they have a plan in place for the worst case scenario, they can get back to having fun and hopefully living happily.
What’s the difference between CIC and medical insurance?
One of the biggest objections we hear to taking out CIC is that people believe they don’t need it because they have Medical Insurance.
A quick glance at the table below will show you how CIC is completely different to Medical Insurance.
Your expenses |
Medical insurance |
Critical illness cover |
Rent |
No |
Yes |
Mortgage |
No |
Yes |
Utility bills |
No |
Yes |
Loans/debt |
No |
Yes |
Food |
No |
Yes |
School fees |
No |
Yes |
Modifying your home (addition of stairlift, ramps etc) |
No |
Yes |
Cost of care if you become disabled |
No |
Yes |
Hospital bills |
Yes |
No |
While medical insurance is paying for medical treatment, CIC ensures everyday life can carry on with the minimum of disruption. It will enable your client to concentrate on their recovery, letting CIC take the strain until they’re able to get back into the saddle.