Insurance World

Critical illness insurance offers cover for certain specified conditions such as cancer, heart problems, kidney failure, loss of limbs, etc., The cover is quite simple and straightforward, in that if you are diagnosed with one of the severe illnesses listed in your policy a payment is made. On average 35 conditions would be considered as falling into this category with most companies. There is just one company, Virgin, who vary the cover by offering severity-based payments when cancer is diagnosed. Obviously with an illness such as cancer, there are various degrees of severity and with increasing success rates in the treatment of this disease; this seems a fair way of dealing with the situation.

The Financial Services Authority are not certain that people realize the limitations on the number of severe medical conditions covered by their policies and that they could be in for a nasty awakening if they assume that every serious illness will be covered.

With this in mind, the Prudential have brought out a policy which lists 140 severe conditions, which will be covered by their plan. Rather than the “black and white” decision made on diagnosis, this promises a grading of the payout according to the severity of the condition. A spokesman for the Prudential says the policy, named the Prudential’s Flexible Protection Plan, will mean that more payments will be made to insurers with debilitating illnesses, whose illnesses would otherwise be outside the scope of the insurance and who would then get nothing at all.

An improvement then on “black and white”, but could this leave a “grey” area instead? Apart from knowing that they are, in fact, likely to be paid out, the decision could be left open to argument regarding the grading of the level of severity of the condition: therefore consumers could be worried and confused about the final amount agreed. What insurers would grade as relatively minor may appear very different to someone newly diagnosed with a condition. It could be a case of accepting the fact that a smaller payment is better than nothing at all, but it could also be that the payment doesn’t match expectations. It would be advisable to make sure that you thoroughly understand the full implications and terms of the policy before considering taking cover.

Conventional critical illness cover, for a typical 30 year old family man, who doesn’t smoke would be around Ј24 per month, whereas it could more than double with this new plan.

It may be that critical illness cover is not the product for you. For financial security for your family, in the event of your death, life insurance would be the most important planning tool. To cover outgoings if you are incapable to working, income protection insurance could be useful. This offers cover for common ailments too, and not just the critical ones.

For advice and help on the type of insurances available, the easiest course of action is to find an internet broker, who’ll be able to answer your questions and come up with a range of quotes with a minimum of trouble to you and ensure that you arrange the insurance cover which is right for you and your family.

The Chinese year of the dog started last January. And according to Chinese tradition, anyone born in the following year, will be honest and loyal. They also aren’t much concerned about wealth. This could help to explain why there are 5.2 million homes owning dogs without pet insurance cover. As many will have discovered to their cost, they’re leaving themselves exposed to enormous veterinary bills.

The average cost of treating a dog following a road accident is Ј379 and the cost of just a scan could exceed Ј1,000. And as Veterinary science becomes more advanced with breakthroughs in medicine and surgery, the cost of owning an dog can potentially increase.

There is no National Health Service pets and if your dog is ill, detailed diagnostic tests, surgery, medication and care can mean an unexpected shock to your pocket. Studies have shown that on average, an insured pet owner makes a claim every three years.

But do take care. Pet insurance policies vary widely in terms of their cover, the excess you have to pay, the maximum costs that can be reclaimed each year and various exclusions.

So when you’re on the net shopping for pet insurance, it’s important to swot up on the small print. Don’t automatically fall for the cheapest. Cheap premiums customarily reflect limited cover. For example, not all insurers will cover your pet for life. This means that if your dog’s problem requires ongoing treatment, then cover ceases at the twelve-month stage.

Take Sheila Follows’ spaniel, Bonny. Seven years ago Sheila wisely took out insurance cover for Bonny as soon as Bonny joined the family as a pup. All was well until the first spring. Then, Bonny developed a skin allergy and later that year a hip problem. Treatment has been ongoing ever since requiring regular visits to the local vet.

Sheila says,” Bonny has to have a special diet and regular injections to control her allergies. The bill from my vet is usually between Ј375 and Ј450 per month so my decision seven years ago to take out insurance, proved to be one of my best investments. My insurance premium is just Ј15 per month and I’m not sure what we’d do if we weren’t insured!”

Sheila’s policy is a Budget policy issued by Pet Plan and covers lifetime conditions for up to Ј4,000 each year. Pet Plan also have two other pet schemes – their Standard Policy will pay out up to Ј6,000 per year and their Supreme Plan provides unlimited cover. So you can see that even within the same insurance provider, you can be faced with several policies to choose from.

So there’s lots of choice. Some policies even provide protection for kennel fees, or boarding fees if you become ill or even pay your cancellation fee for your holiday if your pet becomes ill before you travel.

Our advice is to look at several pet insurance web sites. Better still, print off their schedule of benefits and terms and conditions. Then spend forty minutes comparing their premiums and look closely at what you’ll get for your money. We know it’ll be a bore but a little extra effort now will be rewarded with a great deal and your peace of mind.

And if your dog could talk, he’d say thanks too. But perhaps a big lick will do!

Postscript

If you receive either Council Tax benefit or Housing Benefit, the People’s Dispensary for Sick Animals (PDSA) will provide veterinary treatment free of charge.

At the moment there are some 5.8 million households that fulfil these eligibility conditions with just over 7 out of ten of homes served by either a PDSA PetAid practice or a PetAid Hospital.

There are 328 PetAid practices and 4 PetAid branches plus 43 PetAid Hospitals.