Critical Illness Insurance Do You Really Need It Or Is It A Waste Of
Time

Critical Illness Insurance Do You Really Need It Or Is It A Waste Of Time



Critical Illness Insurance Do you​ really need it? Or is​ it​ a​ waste of​ time?
GREAT NEWS! There's now a​ one in​ five chance of​ you​ winning the​ lottery before you​ retire .​
Getting excited? Think it's just a​ matter of​ time before you​ win? Think again,​ it's not going to​ happen - but it​ got you​ thinking!
Now think of​ the​ same odds but this time about bad news .​
There is​ a​ 1 in​ 5 chance for men and a​ 1 in​ 6 chance for women that a​ long-term critical illness will prevent them from working .​
Sorry - this time it's true .​
Insurance cannot change those odds but it​ can alleviate the​ potential financial wreckage caused by being unable to​ work through long-term illness and still having a​ family and home to​ support .​

Convention declares that every good family man should have life insurance .​
It's easily understood,​ it's accepted and your next door neighbour has it​ too .​
But what about it's close cousin critical illness insurance? You'll have to​ walk several streets to​ find someone who has it .​
Given the​ odds,​ why? After all it​ pays out a​ tax-free lump sum immediately an​ insured critical illness is​ diagnosed .​

The usual reason given is​ its expense .​
Yes it​ is​ more expensive than life insurance but after all it's providing cover for a​ greater risk .​
You're much more likely to​ experience a​ critical illness than die before your normal retirement age .​
Indeed,​ the​ average age for a​ claim is​ 47 .​
So clearly there is​ much more to​ the​ public's resistance .​
Not understanding the​ risks or​ head in​ the​ sand syndrome are certainly major factors .​
After all a​ lzheimer's disease,​ bacterial meningitis,​ brain tumours and leukaemia plus the​ long list of​ other illnesses typically covered by critical illness insurance,​ are not matters we care to​ think of​ nor know much about .​
Could there be another reason? Well there have been repeated newspaper articles about people who claim on​ their critical illness policy only to​ have it​ turned down on​ an​ apparent technicality – the​ inference being that the​ insurance company cannot be trusted .​
Indeed,​ Standard Life freely admits that it​ turns down around 20 % of​ critical illness claims .​
The truth is​ that behind every story of​ rejection there's a​ harrowing story of​ illness,​ distress and sorrow - and potential copy for the​ journalist .​
But that in​ itself,​ is​ not evidence that the​ insurance company is​ guilty of​ devious behaviour .​
Yes insurance companies do make mistakes,​ but more often than not the​ claim was invalid from the​ outset .​
There are two main causes .​
Firstly,​ the​ policyholder is​ claiming for an​ illness that is​ not one of​ the​ critical illnesses scheduled in​ the​ policy documentation .​
Regrettable,​ but it's a​ fact that if​ the​ illness is​ not listed it​ isn't insured and the​ policy won't pay out .​
The moral is​ to​ closely compare the​ illnesses covered by competing insurance companies and buy the​ one with the​ most extensive coverage of​ illnesses .​
If you​ don't,​ sods law will prevail …… .​
The second major reason for refusal is​ a​ failure to​ disclose all relevant matters on​ the​ original application form .​
For example,​ if​ the​ applicant fails to​ disclose in​ response to​ the​ insurance company's questions that his father a​ died of​ a​ heart attack aged 50 or​ that he is​ having medical tests for headaches,​ then the​ insurance company will wrongly assess the​ risks it​ is​ being invited to​ insure .​
Had the​ insurance company known this extra information they might have increased the​ premium,​ or​ asked the​ applicant to​ go for a​ medical examination,​ or​ waited for the​ outcome of​ tests,​ or​ even refused to​ provide cover .​
By failing to​ disclose,​ the​ applicant has effectively obtained cover on​ false pretences or​ at​ least on​ inaccurate information .​
Thereby lies the​ second moral .​
Always provide the​ truth and the​ full truth on​ your application form .​
Anything remotely relevant to​ your medical condition must be disclosed .​
All this points to​ the​ need for professional insurance advice .​
Critical Illness policies do vary and it​ can take an​ experienced eye to​ evaluate the​ best policy for your circumstances and pocket .​
This doesn't mean that you​ have to​ miss out on​ the​ discounted premiums available online - but do thoroughly talk it​ through with one of​ their telephone based advisers and do make sure you​ read the​ schedule of​ claimable illnesses when it​ arrives in​ the​ post .​
Then sit back knowing you've taken another important step to​ protect your family's finances .​
Lets all hope that you're one of​ the​ majority who are happy never to​ claim .​
It's now time to​ concentrate on​ enjoying life.




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