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Low level of specified serious illness cover in Ireland is cause for concern

Written by Kieran Flynn, on 26th Aug 2015. Posted in General

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The level of specified serious illness cover in Ireland is still relatively low, and lower again than in the UK, according to mutual life, pensions and investment company Royal London.

The company claims that the strength of sterling will explain some of the differential but suggests that it may also be linked to a lack of awareness here of the need for specified serious illness cover. 

The purpose of specified serious illness cover is to provide a lump sum if you are diagnosed with one of the specified  illnesses covered during the term of the policy. At just 47, the verage age for making a serious illness claim is "worryingly low," Royal London claims.

“It’s always interesting in any field to compare Ireland with our nearest neighbour, the UK," said Greg Dyer, Head of Operations at Royal London in Ireland."Unfortunately, when it comes to financial protection, in some cases, we do not seem to compare too well at all. Based on a comparison of claims experience in Ireland with that of our parent Group in the UK, we found that the average claim pay-out, which reflects the level of cover in place, is just over €81,320 in Ireland versus €120,000 in the UK.

“Financial brokers have been in existence for longer in the UK (or IFA’s as they are know there) than in Ireland and their independent advice is a very important factor in raising the public’s understanding of the need for financial protection. Thankfully, brokers are becoming much more common in Ireland too, so this should help in increase this recognition in Ireland too."

Source:www.businessworld.ie

 

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