Virgin Money Cancer Cover

Virgin Money Life Insurance has announced the launch of a new cancer cover product available from £5 per month. In a move aimed at exploiting a gap in the critical illness market Virgin Money says its Virgin Money Cancer Cover will see customers save up to 45% compared to an average critical illness quote. This has been achieved with a severity based approach to cover.

People in the UK have a one in three chance of getting cancer in a lifetime and a one in six chance of getting cancer before the age of 70, according to the Institute of Cancer research. Despite these odds, 65% of Brits have no formal financial arrangements in place to cope with maintaining their monthly income levels if cancer stopped them from working.

To lessen the cost of premiums the Virgin plan uses a staged payments approach. It should also allow a quicker payout of cash upon diagnosis of cancer. The cover will pay a lump sum benefit of up to £500,000, for policyholders to spend on whatever they choose.

Under Stage 1 (early cancer) the payout will be 10% of the amount of sum assured in the event of diagnosis. This rises to 25% at Stage 2 (intermediate cancer). However any early cancer payment related to the same cancer will be deducted (e.g. 25% is reduced to 15% if a stage 1 claim has already been made).

Finally, at Stage 3 (advanced cancer), the payout will be 100% or any remaining balance (e.g. 100% reduced to 75% of the sum assured if a stage 1 and/or stage 2 claim has already been made).

As an example, a male aged 35 next Birthday (and a non-smoker in good health), would expect to pay £23.06 per month for £100,000 worth of cover over a 25 year term.

To find out more visit the Virgin website below.

Virgin Money Cancer Cover