Critical illness cover (merged)

savvy

Hi TJMD
Have merged your thread to keep all information together and therefore aid future searches.
Thanks
savvy

dunstonh

TJMD wrote:

Thanks for that. You've been a great help. Do you know why life offices don't seem to offer more than a 25 year term? We are considering reducing the term at the moment as we opted for 30 years so we would have lower payments for our mortgage, but then we were intending on overpaying once we had the house fully up and running.

I dont feel like a great help. Although at least I confirmed what you had probably already guessed.

They used to cover more than 25 year terms with CI but the cost of CI has been increasing gradually and the terms getting worse. I am guessing that they are concerned that with very long contracts, guaranteed premiums leaves them open to more risk and result in contracts which would cost them too much.

It is my personal view that a 30 year reviewable CI policy would be a waste of money. Although it could go 30 years without review, its highly unlikely. In which case the 25 years guaranteed offers far better security and value.

CI cover tends to be re-assured through a relatively small number of insurers. They are the ones that set the criteria most of the time and with all the providers using them, there is little scope for variety in the contracts as far the bottom line goes.

SPENCER

In response to IanDC's message and his CI claim problem and also to Joe bloggs "read small print".

I think anyone choosing a CI policy to try and find a good reputable company although I don't think that any of them play particulary fair and the small print will not always matter to the ins co.

For example, my claim currently with the Ombudsman against Norwich Union. I have claimed againt disability element of the policy, been unable two work for more than 2 years, diagnosed with incurable long term illness 5 years ago, have and still undergoing treatment to control condition. All medical reports stipulate unlikely to ever been able to carry out my clerical position but if one of the 20+ other treatments available alleviates it any better might me able to undertake light or part-time work but unlikely to obtain job in the long term due to ongoing disabilities. Ins. co say until I have tried all treatments I cannot prove permanent disability.

There is absolutely nothing in the small print that requires this. The definition and policy definitions have been met. This is just something the Ins Co have "made up" to avoid payment. My advice is to be very careful when selecting a policy as it might not be as straight forward as you expect it to be if you need to make a claim.

5limJim

Hi,

am posting this on behalf of a colleague who has no access to the web, is it common that places tie in cover to the length of term of the mortgage, she is looking to change her provider (Currently a company called Countrywide who are charging her £47 per month, she has received a comparable quote for 31 pound per month, 16 pounds better in her pocket).. But when she called Countrywide to cancel the policy they said she was tied into it and that she would need to speak to the Financial Advisor who arranged her cover, is this normal, or are they just stalling??

dunstonh

In the past, there used to be tied in deals. However, that is not allowed on new business anymore. To be honest, I dont know if the ruling applied to existing business.

IanDC_2

Spencer,sorry to hear about your illness, you mention the claim is with the Ombudsman, be awere there is the ombudsman and if you don`t accept their decision, then there is THE OMBUDSMAN, the main man, by the way has the insurer returned your premiums?

payless

5limJim wrote:

Hi,

am posting this on behalf of a colleague who has no access to the web, is it common that places tie in cover to the length of term of the mortgage, she is looking to change her provider (Currently a company called Countrywide who are charging her £47 per month, she has received a comparable quote for 31 pound per month, 16 pounds better in her pocket).. But when she called Countrywide to cancel the policy they said she was tied into it and that she would need to speak to the Financial Advisor who arranged her cover, is this normal, or are they just stalling??

In theory brokers can tie you in ( in lieu of a fee- often saying the commission offsets a mortgage atrrangement fee ), but its rare, and even rarer amongst the tied estate agency market ( which I assume we are talking about here) , when in place it usually lasts 2-4 yrs only ( clawback on most policies) and even if in place it should have been ageed / confirmed in writing at outset
as part of a terms of business.

SPENCER

IanDC

The ins co are paying the monthly premiums as I have waiver of premium cover and they accept that I cannot work.

It is with the Ombudsman for a final decision as the adjudicator agreed with the Ins Co. I do not believe that the adjudicator actually received and read the medical reports and went on what he was told by NU. The reason for this because NU quoted statements that apparently the doctor's said in the reports and the adjudicator repeated them in their correspondence however when I received the copies of the reports no such things were said. Unfortunately I was not able to get hold of the main report until after I have asked for a final decision as NU were refusing to let me have copy!. I reported the incidence to the Information Commissioner who upheld my complaint. By they way I did sign a form at the begining of the claim for copies of all reports.

The way this has all been handled has been totally unprofessional and I believe it has been deliberate because they do not want to pay out. If I had known when I purchased this policy 8 years ago that this is how Insurance companies behave I would never have purchased the policy. The extra stress that this has caused on top of my illness is indescribable.

IanDC_2

SPENCER, If we all knew then what we know now, we`d do things differently.My advice is, keep the paper work going, eventualy they will be seen acting unreasnobly which can only help you.Foegive my bias but insurance is a nest of vipers, another of my great concerns is the dissaperence of the application form as soon as it`s completed and signed this should be included with all the paper work when the policy is accepted, the financial info is, AT THIS POINT I WONT EVEN GO NEAR THE MEDICAL RECORDS.(what a weapon of mass destruction that is)

mr218

SPENCER wrote:

In response to IanDC's message and his CI claim problem and also to Joe bloggs "read small print".


For example, my claim currently with the Ombudsman against Norwich Union. I have claimed againt disability element of the policy, been unable two work for more than 2 years, diagnosed with incurable long term illness 5 years ago, .

hi spencer,

recently when we were looking for quotes for critical illness my financial advisor said that he had stopped sending clients to norwich union now because couple of his clients had a lot of problems getting them to pay out on a straightforward claim. their claims were still with the ombudsman as well i think

they seem particularly rubbish