Why should I consider a new critical illness policy if I already have one?

The policy conditions may have changed.
Changes in treatments are gathering pace each year. New conditions are being classified by companies as ‘critical’. In the early days when these plans were available they only covered the main conditions such as Cancer, Heart Attack and Stroke. Some companies now include well over 20 different conditions. If you want to know more you can call our Helpdesk for further information.

Your own circumstances may be different
If you already have a critical illness policy you may have decided upon the amount of cover based on the mortgage you had at that time. Have you remortgaged or increased your mortgage with a new lender since? Have you changed from being employed to that of self employed? Have you changed from being self-employed to a director of your own company? Do you earn more than you did when you set the level of cover? Do you have dependents would look to you for financial support?

"An individual is much more likely to have a critical illness within the period of the loan than they are to die, and the additional cost is minimal. It provides a lump sum at a difficult time when many people wish to re-assess their lives."
(Source: Ronnie Martin, Protection Director for Legal & General)

The impact of inflation
Inflation, whilst it is currently relatively low, it has been high over the medium term. It could be that the amount of critical illness insurance cover you first set will not be enough to achieve the peace of mind you desire today.

If you insured for £50,000 in January 1979 you would now require £130,000 in October 2003 to maintain a similar standard of living. Reversing that, your £50,000 would only now be worth £19,000.
(Source: UK Retail Price Index)