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Don't be misled by critical illness cover ads

Date: Thu, 04 May 2006

Many consumers could be being misled by financial services companies who use industry jargon to explain products such as critical illness cover.

Recent research by the accountant Grant Thornton concluded that almost 75 per cent of UK financial services ads failed to meet standards set by the Financial Services Authority (FSA).

In particular, some companies used scare tactics to encourage consumers to opt for their products, with ads using statistics including "one out of three people will get cancer in their lifetime". However, the critical illness cover ad did not reveal that some forms of cancer would not be covered.

An FSA spokesperson explained: "A consumer's initial impression of a product can inform their subsequent decision-making to a great degree, so it is important firms produce promotions that help consumers make the right choice."

The Association of British Insurers has recently introduced a best practice guide encouraging providers to make sure they provide customers with information on what conditions are covered and not covered by the critical illness policy.

As with all financial products, customers are encouraged to make sure they read the small print and that the cover being provided is suitable for their needs.


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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.