Critical illness sales holding up

by Richard Kilner

Story link: Critical illness sales holding up

Critical illness sales are holding up well, despite falling mortgages sales, according to a new guide by Defaqto.

The two have tended to be closely linked, but from 2007 gross mortgage lending declined from £362,632m to £143,506m, whereas total critical illness sales fell only 4.7% compared to a 19.5% fall in mortgage-related critical illness sales.

Ben Heffer, Insight Analyst and guide author, has said that those trying to sell have had their work made more difficult by the recession leading to consumer efforts to reduce spending.

Heffer also warned that the best value for money was not simply a matter of the policy that covered the most conditions, adding that the quality of definitions was of great importance.

The advantages of critical illness coverage were highlighted last month by Aviva, with the news that the average British household had enough funds to cover bills for only a fortnight should a partner become critically ill or pass away.