Scottish Provident has reported a four-fold increase in sales of its critical illness plans on an income basis.
The insurer claimed that, as economic instability remains in the UK this kind of product is becoming ever more popular. It also comes at a cheaper price - Scottish Provident calculates that its family income benefit plan can save customers up to 59% in monthly premium charges.
For example, a 39 year old male who is a non smoker, with a mortgage of £150,000 for a 20 year term, would be paying a current monthly premium of £71.86 to receive the benefit as a lump sum in the event of his death or critical illness.
Alternatively, if he opted to take out the full income plan for his family they would receive a monthly income totalling £7,500 a year for 20 years at a monthly premium of just £29.64 - a saving of £42.22, or 59 per cent.
Susan Barclay, Head of Marketing at Scottish Provident, said: "‘The four-fold increase shows that people are increasingly concerned about ensuring their family's financial safety. Budgeting for the future involves creating a sensible financial plan, while not sacrificing valuable cover that may be vital in protecting a family in both the short and the long term."
