There needs to be a "shift in thinking" about critical illness (CI) cover to make it more reasonably priced for contractors and others, it has been claimed.
Roger Edwards, proposition director at Bright Grey, said: "During the boom in the housing sector, CI policies had established themselves as debt-repayment protection that would ensure a mortgage would be paid off if the holder was ill. As the mortgage market has fizzled out, rates for life cover have plummeted while CI rates have not."
According to Mr Edwards, £100,000 of life insurance currently carries a premium of approximately £12 per month, but adding illness protection increases it to around £80. He is urging providers to move away from the idea that "CI has to be all or nothing" and to lower costs by developing policies that would cover for up to £25,000, rather than the full £100,000. Mr Edwards argues that offering CI on this basis will make it much more affordable for everybody.




