LONDON: Richard Branson's Virgin Group is launching a new cancer insurance product through its Virgin Money Life targeting a population that is paranoid about cancer and its fatal implications. The product, called the Big V, the company claimed, is 45 per cent cheaper than the standard critical illnesses insurance cover.
Under the policy, a male aged 35, a non-smoker in good health, wanting a 100,000 pounds worth of cover over a 25-year period, will pay only 23.06 pounds a month against 52.65 pounds charged by HSBC Life or 48.06 pounds charged by Standard Life for its usual critical illnesses cover.
Virgin said it is using a "severity-based approach to cover" in devising the policy. It covers both men and women and has a staged payment system, which allows quicker payout of cash when diagnosed with cancer. In stage one, described as early cancer, a policy holder will get 10 per cent of the sum assured on diagnosis. At the intermediate cancer, the patient gets 25 per cent of the sum assured, minus the early cancer payment of 10 per cent, if paid. And at the advanced stage, the patient is paid the balance.
According to research by the Institute of Cancer Research, one person in three in the U.K. has a chance of afflicting with cancer, while one person in six has a chance of getting the disease before the age of 70.
Virgin says it has found through a study among British people that as much as 65 per cent of Britons have no formal financial arrangement to meet exigencies and to have any regular income in case they are not able to work.
Branson said his company is offering the most comprehensive cancer cover in the country. "Our severity-based approach links the benefits to the impact of the condition which allows such keen pricing. The staged lump sum payouts mean quicker payout of cash which will help our customers to focus on recovery and not worrying about their finances."
Virgin said it would want to cover "as many people as possible," but admitted that the scheme could exclude people based on family history or if they themselves had had cancer in the past. A spokesperson for the company said everything will be on a case-by-case basis and some people might have to pay more for their premiums.
Posted
on : Tue, 10 Jan 2006 08:05 GMT | Insurance News
By : Pippa Fielding
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