Virgin takes off with cancer insurance

Jan 11 2006

Entrepreneur Richard Branson's Virgin Money Life is now launching a new cancer cover insurance package called The Big V which, it claims, is 45 percent cheaper than standard critical illness cover.

According to the Institute of Cancer Research, Brits have a one in three chance of getting cancer and a one in six chance of getting cancer before the age of 70.

Virgin says that despite this, 65 percent of British citizens have no formal financial arrangements in place to cope with maintaining their monthly income levels if cancer stops them from working.

However, the one fact Virgin does not mention to it's potential clients is that 85 percent of those who die of cancer are over the age of 65 and would probably not be working anyway.

Apparently under Virgin Cancer Cover, a male aged 35 next birthday, a non-smoker in good health, applying for 100,000 pounds worth of Virgin Cancer Cover over a 25-year term would pay around 23.06 pounds a month.

This compares well to other schemes who demand a monthly payment of anything from 48 to 52 pounds a month.

Virgin says it is using what it calls "a severity-based approach to cover".

Their policy covers both men and women and features staged payments, which allow a quicker payout of cash upon diagnosis of cancer.

At stage one, early cancer, the policy pays out 10 percent of the sum assured on diagnosis.

When the patient has intermediate cancer, the policy pays out 25 percent of the sum assured, minus the early cancer payment of 10 percent if that has been claimed.

On diagnosis of advanced cancer the policy pays out the balance.

Virgin's staged payments scheme are a direct result of the high success and survival rate being seen for many cancers.

By restricting the payments, premiums are able to be reduced.

Branson, the chairman of Virgin Money says they are 'hammering down' the cost of cancer protection and offering the most comprehensive cancer cover available in the UK.

He says the severity-based approach links the benefits to the impact of the condition which allows keen pricing, while the staged lump sum payouts mean quicker payout of cash which allows customers to focus on recovery and not worry about finance.

He believes Virgin Cancer Cover is comprehensive and affordable.