CIC commonly pays out a lump sum if an individual is diagnosed with specific specified conditions. Most sales of CIC are made to consumers taking out a mortgage. While CIC could be bought as a stand-alone item, typically it's taken as component of a term assurance policy.
Numerous sales are produced on an advised basis following a full assessment of the individual customer's economic demands. Overall, CIC sales have been in decline - falling by about 30% between 2002 and 2004.
Firms selling Critical illness cover (CIC) are generating efforts to meet needed standards but a new survey reveals they will need to do a lot more to show they are treating shoppers fairly and helping them to have a greater understanding of the item.
Visits to firms and mystery shopping exercises by the Financial Services Authority (FSA), have specifically looked at how compliant firms' sales processes function when selling CIC.
However, FSA Director of Retail Firms Sarah Wilson, stated the survey had many positive findings but also recognised some complications. "CIC [as a product] has launched initiatives to handle them and to help in the fair treatment of consumers, specifically to make policy documents and applications forms clearer. It really is early days but these appear to be getting a positive effect. "However, our function confirmed several of the compliance concerns we already identified last year inside the context of work on the monetary promotion of CIC and on general insurance documentation. As CIC is often complex, firms at times have trouble obtaining prospects to know what they are purchasing." This lack of understanding makes it troublesome for clients to make a judgement about no matter if CIC the appropriate item to meet their protection needs as opposed to a payment or income protection policy.
Numerous sales are produced on an advised basis following a full assessment of the individual customer's economic demands. Overall, CIC sales have been in decline - falling by about 30% between 2002 and 2004.
Firms selling Critical illness cover (CIC) are generating efforts to meet needed standards but a new survey reveals they will need to do a lot more to show they are treating shoppers fairly and helping them to have a greater understanding of the item.
Visits to firms and mystery shopping exercises by the Financial Services Authority (FSA), have specifically looked at how compliant firms' sales processes function when selling CIC.
However, FSA Director of Retail Firms Sarah Wilson, stated the survey had many positive findings but also recognised some complications. "CIC [as a product] has launched initiatives to handle them and to help in the fair treatment of consumers, specifically to make policy documents and applications forms clearer. It really is early days but these appear to be getting a positive effect. "However, our function confirmed several of the compliance concerns we already identified last year inside the context of work on the monetary promotion of CIC and on general insurance documentation. As CIC is often complex, firms at times have trouble obtaining prospects to know what they are purchasing." This lack of understanding makes it troublesome for clients to make a judgement about no matter if CIC the appropriate item to meet their protection needs as opposed to a payment or income protection policy.
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