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Summary
An interesting new product has been developed by Animal Friends Insurance. The life insurance policy offers lower premiums to vegetarians, based on evidence that they are at a lesser risk than their carnivorous counterparts of developing certain illnesses. It remains to be seen whether other insurance firms will follow the lead set by Animal Friends Insurance .

A not-for-profit insurance business has launched an insurance policy which offers vegetarians and egg eaters a reduced premium life insurance.

The offer, thought to be the 1st of its kind, is being brought to the market by Animal Friends Insurance (AFI). The company is offering veggies a 6% reduction in priceon mortgage cover premiums
The firm said that veggies ought to pay a lesser cost for the product, which pays out if the customer dies, because they were more unlikely to suffer from a list of critical illnesses, including some cancers.

Elaine Fair, the managing director of AFI, claims that the danger of veggies being diagnosed with certain cancers is lowered by up to 42% and the risk of them suffering from heart disease is lowered by up to 32%, but despite this they have, until now, had to pay the same insurance costs as plan holders who eat meat.
She says that AFI believe that this is not fair and says the life organisations should recognise the idea that being a veggie can make have a significant effect on life expectancy and reduce its charges accordingly.

A standard price arrangement is also on the market for meat eaters. Both policies are brought to the market by LV=, which used to be known as Liverpool Victoria.

In common with standard life plans, a range of things contribute to the cost of the monthly premium including whether the applicant smokes, their age, weight and sex.

Currently at the moment, AFI is making the 6% discount itself from the payment it earns from from LV=. In the future, however, the company’s objective was to offer lower costs on specialist insurance cover. In the company is hoping to sign up enough veggies to make it viable for LV= to underwrite another plan that takes the vegetarian’s diet into account.

Indeed there are huge savings to be made, a thirty eight year oldnon-smoker purchasing £300,000 worth of life insurance might potentially save £393.60 over a 20-year term.

Where cheap life cover is concerned, AFI thinks that life insurance companies should start to treat those that like meat and non-meat eaters in a way that is similar to the way they assess non-smokers and smokers. Hopefully others in the insurance industry will take the same initiative.

It is thought that some executivesin the insurance industry do not believe there is verifyable proof that vegetarians live longer, and how any insurance company would know that people who had stated that they were veggies did not sometimes enjoy the odd lamb chop.

It’s true that when it comes to smoking there are GP records - if you now don’t smoke it’s possible that your GP will be aware. But this isn’t the case when it comes to eating meat, an insurance executive observed.

But many veggetarians say that they are not worried about people falling off the vegetarian wagon and suggested that once a vegetarian has become a vegetarian, they do not go back to meat-eating, that is unlike smokers who tend to drift in and out of their habit.

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Summary
The outcome of progress in medical science on Critical Illness insurance. The payback afforded by reviewable insurances.

payments for critical illness are increasing due to the expanding amounts of claims and apprehension about medical improvements in the future future. If you are diagnosed with a life threatening illness, CIC pays you a tax free payout, which will support you financially if you are off work due to illness.

 2 top insurance companies will be elevating the cost of cover soon. Legal and General’s payment will rise by 20 to 27 per cent and that of Standard Life by 19 per cent. These rises are insignificant when compared with the 52 per cent imposed by BUPA and Friends Provident and the 61 per cent announced by Norwich Union and Scottish Equitable. Liverpool Victoria are still deliberating what increase they will enforce next month.

The insurance companies are in turmoil as developments in medical science help patients to survive serious conditions, which would have been terminal only 12 years ago. The result of this huge alteration in health insurance is that life insurance claims are decreasing whilst pay outs on critical illness policies have seen a sudden rise. Consequently the cost of life insurance is going down, whilst that of critical illness cover is increasing rapidly.

In an effort to keep the price of premiums down, the AIB has amended the conditions under which insurance is offered for heart problems and prostrate cancer.

Many patients are now discovering that early detection of these conditions results in longer life expectancy. The illnesses under which Critical Insurance policies make a pay out are being redefined. This change will help to lower the amount of claims and subsequently slow down the rapidity at which payments are increasing. (For instance), critical illness cover will only pay out for skin cancer if it is invasive)

Freddie Harrrison of broker’s Direct Line says that critical illness insurance policies at the moment cover illnesses, which are simpler to diagnose and treat. Claims are therefore being paid out for non-life threatening conditions, which is not the of the policy
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A review of the conditions of many policies is expected in the future. CIC for diabetes is being taken away by PPP, which leaves BUPA as the only insurer that incorporates this condition.

 Reviewable life assurance are at this moment being supplied by a growing number of insurers. conditions and pay outs covered by these policies are examined every few years. A standard CIC is a cast iron policy, which carries on for a predetermined number of years. The payments stay the constant whilst the cover is in place, which is usually the length of their home owner loan. On the other hand this kind of insurance is becoming more costly.

The Group Director of Friends Providents’s independent financial adviser division, Justin Myers says that you have to pay for the reassurance that a guaranteed insurance policy offers. He adds that customers are most likely to decide on a renewable rather than a guaranteed policy as the increase in pricebroadens. While Aviva raises it’s Critical Illness Insurance it is also introducing a reviewable policy thus giving customers a choice. Royal London has withdrawn it’s guaranteed CIChave a guaranteed policy. He recommends that if you do not already have cover it would be a sensible to take it out soon,| before, any further changes are announced.