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Life, critical illness insurance on the rise

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Demand for life insurance and critical illness policies is soaring as people see an easing in the cost-of-living crisis, a survey by a leading financial advisory has found.

Enquiries among deVere Group clients about life and health insurance surged 65% in April compared to the month before, the company said.

Life insurance is designed to provide financial protection in the form of a lump sum for an individual’s dependents, such as their spouse or children, in case of their unexpected death.

Critical illness insurance provides a lump sum payment to the policyholder upon diagnosis of a serious illness, such as cancer, heart attack, stroke, or organ failure.

This payment is typically tax-free and can be used to cover medical expenses, lost income, and other costs associated with the illness, helping the family cover medical expenses and other expenses.

“In April we registered a 65% jump in enquiries from existing and potential clients about life insurance and critical illness,” said deVere’s CEO and founder, Nigel Green.

“Our financial consultants have noted that since late 2021 and throughout last year, people had been more reluctant to consider or pursue these two important areas of a proper financial planning strategy. This fallback in demand coincided with the cost-of-living crisis.

“It would appear that as households looked for ways to cut expenses during this period, life insurance premiums was one of the first things to go.”

Green said that other areas of financial planning, such as contributing to saving plans or building-up investment portfolios, were largely unaffected.

Is it a luxury?

“It would seem that life insurance and critical illness have been perceived by some as a luxury.”

“There’s a sense that while the cost-of-living crisis continues, household real disposable incomes are likely to begin rising again in the next few months, when inflation is expected to start dropping sharply.

“We attribute this general sentiment to the current increasing demand for life insurance and critical illness cover.”

Green explained that life insurance and critical illness cover can be affordable, and there are policies available to suit various budgets and needs.

“It’s a small price to pay for the security and protection it provides. Knowing that your loved ones will be taken care of financially in case of your untimely death or critical illness provides peace of mind and alleviates stress.”

“It allows you to focus on recovery or the present without worrying about the future,” the deVere CEO added.

“Life insurance and critical illness cover are one of the main pillars of a sound personal financial strategy.

“Insurance of this kind are things you shouldn’t never cut out of your strategy because, as we know from experience, anything can happen.”