Many insurance companies have been increasing their critical illness premium rates recently. This followed the further advances in medical science, making the ability to claim easier. Norwich Union was one of the first companies to react to the increased risk and hiked critical illness premium rates by 40%.
The increase happened two months ago and the insurer has admitted new applications have significantly reduced. This is because other companies did not increase their rates to such a high level. The company is now reducing critical illness rates when the cover is taken out alongside life insurance cover. However, the rates for critical illness cover as a stand-alone policy have not yet reduced. Norwich Union said that these rates would reduce but foresee premium rates rising again in the future.
Tip: Critical illness rates are very volatile at the moment and the difference between one company and another can be large in terms of cost and what they cover you for. If you are looking to take out cover, take independent advice on the different covers and costs involved.
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