19 November 2018

Critical illness impacts the UK economy by more than £15bn a year

Legal & General’s new research shows that Britain’s four biggest critical illnesses take more than £15bn a year out of the UK economy.

New research shows a  loss of output of £15bn to the UK economy each year due to the following critical illnesses:

  • Cancer - £9.3bn
  • Coronary Heart Disease - £2.8bn
  • Strokes - £1.9bn
  • Multiple Sclerosis - £1.1bn

The long-term effects of Critical Illness 

For example, Cancer’s largest impact comes from premature death (£5.2bn), but more than a fifth of the financial impact (around £2.1bn) is linked to employees still in work but being affected by things like fatigue and post-traumatic stress.[1] 

Then take MS. Although less common in the UK workforce, it has a £1.14bn impact on the economy. It also has potential to cause up to £8000 in lost earnings in the years following diagnosis.

Choosing the right cover

So as you can see, the potentially long-term financial impact shows the importance of critical illness cover policies. They can ensure your clients have help with outgoings as a lump sum could be paid out in the event of your client suffering a specified critical illness during the length of the policy - reducing added worry. And the good news is, protection policies are becoming more sophisticated. For example, Legal & General Critical Illness Cover provides extensive coverage for more than 40 critical illnesses, as well as Children's Critical Illness Cover, and other optional extras like 24/7 GP access Legal & General GP24 Service *, and our new Critical Illness Extra option covering in total 95 conditions which includes 53 full payment conditions and 37 additional payments.

John Summerfield, Protection Director at The Mortgage Broker Ltd says:

 “Being diagnosed with a critical illness means that people often have to take time off work to recover, which has a financial impact through loss of earnings and the added worry of struggling to pay monthly bills or the mortgage. This is where Critical Illness Insurance can play a positive role, providing much-needed support for individuals and their families by paying out a lump sum to cover monthly costs. By having protection like this in place, the policyholder can ultimately focus on what really matters – their recovery.”

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[1] The impact of critical illnesses on the UK economy, Cebr, p.9

* Legal & General GP24 is a service provided by Healix Health Services and Medical Solutions UK Ltd