Product director Roger Edwards says last week’s announcement by Health Secretary Alan Johnson allowing patients to top up their NHS care with drugs paid for privately “plays to the alternatives that CI cover can be used for”.
Edwards says: “CI cover is perceived as being expensive with reason. We have become so used to saying your mortgage is £200,000, therefore you need £200,000 of CI cover with a £150 premium, that people are more likely to drop CI in favour of paying £15 for life cover.
“If you present people with alternatives and explain that you do not need the full amount – for example, an emergency fund of £30,000 which could cover a couple of years of top-up treatment – then this creates a good opportunity for us to say protection is not just about clearing the mortgage.”
Highclere Financial Services partner Alan Lakey says: “There will be sufferers who choose to top up out of their CI payout but I do not believe it will cause extra plans to be taken out.”