Compare similar insurance deals, says HSBC

Wed, 11 Jan 2006

Those shopping around for life insurance and medical insurance should compare similar insurance deals, HSBC says.

This comment comes after the launch of Virgin's medical insurance policy that offers protection for cancer diagnoses.

HSBC is "all in favour" of the fact that this launch highlights the need for adequate financial protection against critical illness, but warns that people should compare like with like.

"Comparing the price of a cancer-only policy with that of a full life and critical illness policy is like comparing third party fire and theft [insurance] with fully comprehensive car insurance," says the head of HSBC Life UK, Craig Colton.

He says that a cancer-only insurance policy may suit some people, but points out that more than a third of critical illness claims are for circulatory diseases.

Mr Colton says "it makes sense" for people to consider the wider cover that is included in a comprehensive life and critical illness policy.

Benign tumours are among the critical illnesses covered by the HSBC life and critical illness insurance policy, he says.

"HSBC policyholders are covered from the day their policy starts and would normally receive 100 per cent of the sum assured at the stage of illness termed intermediate by the Virgin product (which would pay only 25 per cent)," Mr Colton concludes.

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