Life insurance with critical illness cover

hannah260496

Hi, I am looking for some advice. I bought a life insurance with critical illness cover in 2000. My daughter became ill in 2007 and I tried to claim under the critical illness for her, she had a brain tumour. only to be told that all policies pre 2001 did not include this additional benefit. my daughter died in december and I am now told by the same insurance company that her life was not covered either for the same reason. I am payiing the same as someone in my circumstances btu receiving less benefits under the policy because I was an existing customer. this does not seem fair. I was never offered an optionto change my policy and despite changing my mortgage with the same company on 2 occasions after 2001 was not offered any further advice. can anyone tell me if this is right?

dunstonh

I am looking for some advice.

The board is not authorised to give advice. Its just comment and discussion only.

I was never offered an optionto change my policy

It is not the place of the insurer to make you aware of the varying versions they may offer over the years. In many cases, the older CI plans have better coverage than modern ones. You should periodically review your policies to see if what you have can be improved upon. Do you have a servicing IFA?

can anyone tell me if this is right?

Not many plans include cover for children although some do. Even when it is included, the sum assured is normally much reduced from the main sum assured. Sometimes just a few thousand pounds.

I'm sorry for your loss but there is nothing unfair about what has happened. Its normal in most retail markets. You buy a car and it gets a facelift a year later. You buy a TV and its replaced with a new model a year down the road. You bought a policy and it was replaced for new business with a different version afterwards. its the same principle.

hannah260496

Thank you for your comments. when I looked into this in 2008, it concerned me that this was a standard addition recommended by the FSA and Insurance regulator to be introduced in 2001 as best practice. Would it not work along the same way as mortgages i.e. they have to offer the same deals to exisiting and new customers. I am told that I cannot even add on anything to my exisiting policiy for my children to be covered and will have to start all over again at an increased cost. it may be right but somehow I feel is discriminating against exisiting customers. I appreciate your view on the car scenario i.e. you buy a car and then it gets upgraded but this simply is not the same relationship. You insure your life and pay a premium for a designated period of time, a car is a purchase or purchase plan. The two are not the same.

lisyloo

First sorry to hear about your loss

i.e. they have to offer the same deals to exisiting and new customers

They don't have to offer you on-going advice.
If you had gone and asked for advice that would be different.
It isn't (for example) anyone else's responsibility to upgrade your TV, car, curtains or anything else.
If you asked for your policy to be reviewed that would be different and at that stage you should be offered the new version, but generally life assurance isn't flexible, it normally means stopping and starting which can be more expensive as you have got older in the mean time.

The two are not the same.

Actually, I think they are very similar.
In both cases you get what you bought on the day your purchased it.
You surely wouldn't agree if they wanted to make the terms and conditions worse? In that case you would (rightly) insist they stuck to the deal you agreed.

Sorry if it's not what you want to hear, and I do sympathise with your situation.
I think you've jsut been unlucky with the timing.

dunstonh

Would it not work along the same way as mortgages i.e. they have to offer the same deals to exisiting and new customers.

No. You are priced and underwritten on the facts at the point of application. You can ask to reapply for a new policy later on if you wish but the price and terms will be based on the facts at the time of this new application.

I am told that I cannot even add on anything to my exisiting policiy for my children to be covered and will have to start all over again at an increased cost. it may be right but somehow I feel is discriminating against exisiting customers.

I own a Panasonic TV. Should Panasonic offer me updated TVs each year at reduced cost?

I appreciate your view on the car scenario i.e. you buy a car and then it gets upgraded but this simply is not the same relationship.

It is. You buy a product knowing the terms at the outset. You choose to spread your payments monthly rather than a single premium.

You insure your life and pay a premium for a designated period of time, a car is a purchase or purchase plan. The two are not the same.

You can pay for cars monthly or as a single amount. The same applies to life assurance. The fact the majority of the people do it monthly is a choice but not a requirement. You can buy single premium life assurance.

The fact things change is a reason why you should periodically review them.