A small number of people are covered against serious illness even though it may arise at anytime. Unum Provident, the income protection provider, has carried out research that say that only 5.2 per cent of the the British work force own critical illness cover, even though they will obtain a lump sum if they have  a heart attack, stroke or suffer from cancer.

17% of people think the cover to be too dear, the survey reveals, which give reasons for the low take up.

Potential clients are also perplexed by the wording of policies and the difference between permanent medical insurance and critical illness insurance.

An operational party formed by the AIB, is presently re-examining the phraseology of policies. The situation could turn out to be much more confusing if the working party choose to reduce the amount of conditions defined as a critical illness.

Standard Life have introduced a new product known as Elixia 123, which it proclaims reduces the cost of critical illness insurance by around 30 per cent and on occasions by as much as 50 per cent.

This will be achieved by letting clients to select the illnesses for which they require cover. There are three categories of risk. Category 1. Strokes, invasive cancer and heart attacks. The insurance will only make a settlement if the disease leads to major life style changes or is life threatening.

Category two. illnesses that do not have so much impact on life expectancy but do significantly affect life style. Alzheimer’s, blindness and Motor neurone disease  are included in this category.

Category three. Conditions

Critical illness cover is not that expensive so it is advisable to go for a comprehensive policy, which will give you security.

Jennifer Green, the distribution development manager at BUPA, is concerned about how the jargon is explained. She emphasises that customers must understand exactly what they are purchasing. For example, when is a condition defined as major? The first and the third groups need elaboration before taking insurance as there is not much to choose between them in her view. Difficulties can occur later if the client has not fully comprehended the terms of the insurance policy when they sign.