Last year, insurance companies paid out nearly £5 million to customers claiming serious illness insurance benefits. The Irish Insurance Federation (IIF) estimates that 3,000 people are claiming disability benefits from their insurers while many thousands more each year are diagnosed with serious illnesses like cancer and heart disease.

Since there is some confusion about the different types of disability and serious illness-type contracts on the market, the IIF has produced an excellent brochure called, "A guide to permanent health insurance and serious illness insurance". It explains how the different contracts work and who should consider taking out such policies. The brochure has been awarded the Crystal Mark for clarity and answers the most commonly asked questions about these products, such as which illnesses and conditions are covered by serious illness policies, what the various restrictions are, how these policies are different from VHI/BUPA, etc.

Copies of the brochure are available free from life assurance companies or directly from the IIF, Insurance House, 39 Molesworth Street, Dublin 2, Tel. (01) 6761820.