What’s Critical For Critical Illness Cover? By Michael Challiner At Isnare.com Ezine Articles

Critical insurance is a useful backup to have in the event of becoming ill. But twenty percent of all claims against it are turned down – which means that one in five of those who take out critical illness cover are not getting the insurance they pay for.

Critical illness cover works in a standardised way: if you should fall ill with any of the listed illnesses described on your policy, you will receive a payment. Many people see this kind of insurance as a vital part of their plans for the future, for a good reason: a serious illness can affect the whole family. Becoming critically ill can affect your ability to work – as well as having to pay for care for yourself and any children, you may need to move from or modify your home, or even retrain for a new job altogether. Taking out critical cover should insulate you against having to worry about paying for the things you need, freeing you to get along with the important matters – like getting well again.

Sadly, this does not always work out as it should. Some policy holders have failed to disclose minor ailments in the past, thinking them too insignificant to mention. Unfortunately, their insurance company has then used this fact as a reason to disallow their claim for a more serious illness. And this process is entirely legal

Because you have not told them about an illness, an insurer is entitled to terminate the cover you have been given. Should this happen to you, you then face the twin pressures of dealing with the illness and the fact that the careful, prudent plans you made for just such an emergency have been derailed. So what options do you have in this situation?

You could take the insurer to the Financial Ombudsman Service (FOS) and appeal their decision, but some people find this situation too much to cope with as well as dealing with their illness, and who could blame them? But the good news is that, if you can face it, they will do their best to help. Crucially, the FOS will also work to establish whether you could be said to have deliberately misled the insurers, or were in fact the victim of poorly worded or confusing forms or insurance proposals.

In the event of your making a claim against your critical illness insurance, your insurer will begin a thorough check of your medical records. Alarmingly, there is no limit on how far back they can go. Not only that, but anything you have failed to disclose can then be used to invalidate your claim, yet this search is not carried out when the policy is taken. No wonder some people feel that this is a matter open to abuse. Can you remember every little ailment you’ve ever had, from the childhood ear infection to the odd bout of headache or muscle pain?

Incredibly, things like this – not to mention eye pains, a stiff neck, or depression have been cited by insurance companies as reasons for turning down a claim. A man suffering from prostate cancer had his claim “invalidated” by an undisclosed ear infection, and a woman’s claim was turned down because she had suffered from depression earlier in her life.

These are alarming facts. But it is important to remember that this is the extreme end of the spectrum – four out of five people do still find this kind of insurance functions as needed. Once alerted to the dangers of non-disclosure, you can make sure that this figure improves and you are not one of the unlucky ones! It can’t be stressed enough how important it is to read all of the small print. Be aware of exactly what you are – and are not – buying. And it is equally important to make sure that you do disclose your full health history. Never try to cover anything up, as it will cause many more problems if exposed later. When properly applied, with the right policy, critical illness cover provides valuable help and peace of mind – the way it was meant to be.

So how do you find the right policy for you? It’s worth taking a look online. Internet brokers will be able to keep you up to date on the latest deals, and advise you clearly on what each policy means for you. They’ll be able to answer your questions, tailor a policy to your specific needs and best of all, maybe find you a real bargain!

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