Critical Illness Insurance Critically Important Time To Take Cover

Critical Illness Insurance Critically Important Time To Take Cover



Critical Illness Insurance .​
Critically Important – Time to​ Take Cover
Back in​ 1999,​ the​ Imperial Cancer Research Fund stated that one in​ every three people in​ Britain will be diagnosed with cancer at​ some point in​ their life .​
With rapid medical advances the​ chances of​ survival from a​ major illness are improving but the​ consequences of​ suffering such an​ illness continue to​ be substantial and life-changing.
Critical illness insurance policies are designed to​ help you​ cope with the​ changes which will be necessary should you​ be diagnosed with a​ qualifying medical condition .​
Most policies will pay out following a​ diagnosis of​ heart disease,​ cancer,​ stroke,​ renal failure,​ paralysis,​ major organ transplant and coronary artery bypass surgery as​ well as​ a​ range of​ other conditions .​
There is​ normally a​ one-off tax free payment which is​ intended to​ assist you​ with costs,​ typically the​ need to​ adapt your home or​ car or​ maybe re-train for a​ different occupation .​
It's not only the​ bread-winner that can benefit from this type of​ cover and you​ should take account of​ child care and housekeeping costs which would be involved should Mum be out of​ action.
Unfortunately,​ at​ a​ time when most people are suffering from the​ shock of​ learning that they have been diagnosed with a​ critical illness,​ they and their families may learn some additional disturbing news .​
The insurance industries latest figures show that,​ on​ average,​ around a​ quarter of​ all claims are rejected!
As soon as​ a​ claim is​ made,​ the​ insurance company will request a​ huge amount of​ information from your doctor .​
It's quite likely that much of​ this information is​ not relevant to​ the​ illness for which the​ claim relates .​
The insurer is​ using this information to​ ascertain whether or​ not the​ insured has been completely truthful on​ the​ original insurance application form.
The reason for this is​ what the​ insurers call non-disclosure and if​ any medical information has been omitted,​ they can use this as​ grounds for refusing the​ claim.
It appears that the​ non-disclosure may not be related to​ the​ critical illness .​
Claims have been turned down for various reasons,​ including the​ case of​ a​ woman with breast cancer whose case was rejected because she hadn't listed treatment for depression on​ the​ original proposal form.
The rejection rates are shown as​ follows:
Company % of​ rejected claims
Scottish Equitable Project 28%
Norwich Union 26%
Friends Provident 25%
Legal and General 22%
Bupa 21.5%
Skandia 21%
Prudential 20%
Standard Life 20%
Scottish Widows 18%
Scottish Provident 11%
Scottish Equitable Guardian 10%
Average 23.5%
Despite the​ insurers claim that these rejections are perfectly legal,​ the​ Law Commission appears to​ think differently .​
There has been a​ consultation document published recently and the​ Commission makes the​ statement It is​ possible for an​ applicant to​ act reasonably and honestly and yet still fail to​ meet the​ duty of​ disclosure .​
The conclusions of​ these consultations will be reported on​ as​ soon as​ they are available.
It is​ therefore extremely important that when applying for this very valuable form of​ insurance,​ you​ disclose all previous illnesses .​
It's probable that if​ you​ have to​ claim,​ then your medical records will be thoroughly examined and if​ the​ insurers consider you​ omitted medical information,​ they may throw out the​ request.
Compare companies for the​ best rates .​
Read the​ small print .​
Spend some considerable time in​ listing medical conditions .​
Relax – it​ may never happen.




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