Critical illness cover (merged)

jo_b_2

Thanks for the details. I've moved this over to the Insurance Board, as it might prove the deciding factor for somebody looking for life insurance!

Just a word of warning, for anyone wanting to take out the cover to get the free wine and then cancel:

Quoted from terms and conditions:
If you cancel your policy in the first six months, we reserve the right to request a refund equal to the value of the voucher that has been used.

whiteflag_3

spendersaver wrote:

Saw on the Egg website today that if you take out Life or critical illness Insurance with them before 30th September, they'll send you a voucher for £95 worth of free wine at Virgin Wines

Life insurance is something I don't already have, but guess I should what with a family to consider. I got a quote and it actually turned out to be pretty cheap. Am going to have a look at the market to see how it compares, but the quote was pretty good and that free wine does sound very tempting! :T

There's more info at http://new.egg.com/visitor/0,,3_26205--View_432,00.html

As already posted on this site CI should not be purchased on cost alone.

Why not go to a broker who can do the research for you and you could end up saving you alot more in the long run. Picture the scene , you have just been told youve been diagnosed with a critical illness only to find your policy doesnt cover that particular illness. I hardly think you will say "never mind at least I got a wine voucher when I took out the policy"

droopsnout

I used to have critical illness insurance. It was with Scottish Amicable at the time - now part of the Prudential group.

I had to stop work due to illness - but my illness was depression and anxiety, and those were not covered by my CI policy.

Beware, and consider ALL the illnesses which you may be subject to, not just physical ones. I would imagine that certain professions involve more stress than others, and then there are hereditary considerations. Why psychological conditions seem not be included is beyond my understanding.

LeeJ_2

The more I see and read about Critical Illness insurance the more it leaves a bad taste in my mouth. The whole thing is a charade.

It should surely be very simple - all policies should only be taken out after the insurance company have seen the medical records of the person to be insured. The insurance company should then list all the exclusions and quote a realistic premium. Of course they never do this but instead leave it to the person buying the policy to list all of the test/hospital visits they may have had over whatever period (5, 10 ,15 years). They ask permission to request medical records but again never do so at this stage.

Then, when a claim is filed the insurance company will go through the medical records with a fine toothcomb. How many horror stories do we read about claims behind denied because some spurious test (long forgotten and often totally unrelated) was not declared.

But to do it that way would cost the insurance companies money (checking the medical records). So what? I would be quite happy to pay a fee for them to do that provided it meant that the policy I ended up with was one I could have some confidence in.

I don't want cheap - I want peace of mind. Surely to goodness there must be one company out there which is willing to be different. Which is willing to sell policies which people can have faith in. Sure the premiums might be higher and there might be more exclusions - but at least you would know going in what you were (and were not) getting.

Until that time arrives can anyone comment on companies which have a good track record for honouring CI policies rather than trying to find any and every reason not to do so?

dunstonh

The vast majority of claims are paid where it is a covered event.

There are a range of differences across critical illness policies and the price often reflects that. However, many people want cheap and dont bother to look at what gets left off. That is their own fault though.

If you want quality and dont mind paying for it, any IFA or protection advisor would be able to tell you which CI policies cover the most and have the best claims payout stats (most have published stats).

Having seen a couple of payouts on CI cover this year for my own clients, I have no issues with it at all. However, it is vital to get them set up with everything declared (regardless of how insignificant) and make sure you check the cover list to see what is and isnt covered. Also avoid reviewable plans and the budget "core only" plans.

LeeJ_2

I would agree that it is the responsibility of the buyer to check what is and isn't covered (ie which specific illnesses etc). No argument there.

It is the area of disclosures I have a major problem with. The reality is that the older you are the more visits to a doctor you will have had, the more tests etc. How many people realistically keep a log of all of these? Of course you can request your own medical records but realistically how many people are likely to do this when applying for CI (or similar) insurance. Most people will work from memory and in the majority of cases I suspect try to be totally honest. If someone deliberately lies or tries to mislead then that is their own fault. But how many times do you hear of someone having to battle to win a claim because they didn't include some long forgotten and quite possibly unrelated test?

The last thing you need if you are in a position to submit a claim is the added stress of having to fight this kind of battle.

It should be simple. You apply for CI insurance. The company charges a small set fee to cover the cost of assessing your medical records. They then make you an offer based upon those records. They tell you exactly what they will and will not cover. They quote you the premium. If you don't take up the offer they are not out of pocket because the fee will have covered the time spent on the assessment.

In my opinion they will never do this because:

a) they fear that they would lose a lot of business when people saw the 'real' list of exclusions

b) they fear they would lose business because the premiums would rise because they would know there would be little room for manoeuvre when a claim was filed.

c) the onus would then be on them 100%. They would be the ones who 'should' have been more thorough when making the original offer.

There will always be those who want the cheapest. I would contend that there is also a market for those who not only want a policy with the widest cover but (and probably more important) want a policy which they have 100% confidence in terms of disclosures because it is based upon the insurance company's own assessment of the client's medical records.

I for one would be a customer.

SPENCER

I had posted a small amount of info regarding my claim on other posts. I certainly would not recommend Norwich Union. My original policy was purchased from Commercial Union some years ago but due to mergers it's know NU.

Even if they cannot find any non discosure they will still try to find another reason not to pay out as in my case. For example they say I have not met the policy definition. I have according to my policy (CU) but according to NU's policy I accept I would not have. My policy is not reviewable. I have argued this wiwth them but they would not budge. I have found the claims staff to be unhelpful and inefficient. They have lost paperwork and also not responded on many occasions and not given me the courtesy of a returned phone call.

Splashie

Hello,

I have checked all the main site stuff but am still confused - so appologies if this is very obvious

My health is up and down and as various cancers run in my family, My mum advised me to get life assurance before I go to the docs for investigation.

I dont have a mortgage or dependants so am wondering if she is on about critical illness cover -but can you buy this without life assurance???

totally confused - really hope you guys can shed some light

Splashie

IanDC_2

Hi LeeJ, How refreshing it was to read your comments thankfuly you are awere of the pitfalls prior to completing the proposal form.My advise is to disclose that you might have or have had an illness which the Insurer considers a higher risk,and insist that your medical record is attached to the proposal form and that you insist on having a copy of all the relevent documation,including the proposal form, you must ask, it will not be provided if you don`t ask for it,once you have a copy you can reflect and review from time to time and there may be somthing which come`s to mind which affects your cover, it`s too late at claim stage. It is all suposed to be contracted with the utmost good faith, remember that cut`s both ways, if they decline your proposal don`t be too concerened you wouldn`t have covered any way, always remember the combination of the proposal form together with your medical record are a wepon of mass disstruction if they are not both included at the time you apply, cost is almost irrelevent if you are not on cover, good luck regards, Ian

LeeJ_2

I wonder what an Insurer's reaction would be to a proposal which actually did include a full copy of an applicant's medical record? I wonder if they would actually prepare a proposal based upon that?

Has anyone (or does anyone know anyone) who has actually done just that? ie sent in a proposal for CI (or even Life or Medical Insurance) and enclosed their full medical records? If so I would love to know what happened - particularly if the applicant was the wrong side of 45.