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54% opt for critical illness cover over income protection

More than a half of all protection policies sold through IFAs include

a critical-Illness element, according to research by Liverpool

Victoria Friendly Society.

Fifty-four per cent of IFA-distributed protection policies have some

degree of CI but the research also shows that 23 per cent include

income protection.

Liverpool Victoria says it expects the balance to tip more towards

critical-illness cover primarily for reasons of economics.

As the two products are complementary and people are increasingly

reluctant to take out both kinds of cover, the friendly society says

individ-uals and employers are opting for CI cover.

This is despite the prospect of CI premiums increasing as reinsurers

stop underwriting guarantees for providers.

Continental Research carried out the survey for the friendly society

among 999 people between November 27 and December 2.

Intermediary division director Rye Mills says: “Although

critical-illness cover and inc-ome protection are clearly

complementary, the latter is usually lower down the pecking order and

will lose out where increased costs are a consideration or where it

is covered by the client&#39s employer.”


Resistance growing to extending the Sandler model to with-profits

Financial services group Cater Barnard is teaming up withentertainment financier Comerica Entertainment Group to launch theMonument Film Fund, a new vehicle to fund UK films.The fund hopes to raise £50m, with minimum initial investmentsof £50,000 and increments of £10,000. Investors can get 100per cent tax relief on their investment.The fund will only invest in films […]

Keydata Investment Services – Dynamic Growth Plan 3 Issues 1 and 2

Wednesday, 19 February 2003 Type: Capital protected bond Aim: Growth linked to performance of FTSE 100 index Minimum-maximum investment: £3,000-£1m, Isa £3,000-£7,000Term: Five years Guarantee: Capital returned in full provided index does not fall by more than 50% and fails to recover to at least its starting level Return: Up to 60% growth at end […]

Location effect on offset

Where a borrower lives can make a big difference to how early theycan pay off an offset mortgage, according to telenet bank IntelligentFinance.IF says if money were no option, most people would choose to pay offtheir mortgage early. Its figures show that in terms of earlyrepayment Scotland tops the league.In Scotland, where the average house […]

Cinderella syndrome

For many years, we have referred to income protection as theCinderella product. Although the need that it meets is obvious, ithas never really been very successful.It has often lost out to critical-illness cover, even though the twoproducts are complementary. But Cinderella will not go to the ballunless we overcome some of the perceptions that some […]


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