Critical Illness Insurance Claim

Standuptotheman

Hi,

I have recently been diagnosed with a brain tumour and subsequently had brain surgery to remove it and now started a course of radio and chemotherapy so needless to say, very ill. (just what I needed during my 12 month BR period!)

However, since my BR, i have continued to pay premiums for a critical illness insurance plan that is now available to pay out a considerable lump sum of approx 120k which woulds be very useful for medical expenses, treatment costs etc. I havve refrained from claiming just yet, my AD is not until oct this year.

The OR is not aware of this policy or the potential claim as only asked about my life policy details which i gave but not the critical illness plan. Additionally I have not been offered the option to buy the interest in any policies.

My question is, does anyone else know of anyone who has been in a similr situation and: did they claim?, dids they keep the money? or did the OR claim it all and use it to pay off creditors? etc

Thanks for any replies.

dmg24

Why would you not tell the OR about it? If you have the ability to pay off your debts, then you should do so.

Ineedaname

Critical Illness policies often have a 'life' payout amount too so you should have told your OR about this policy.

Regardless, you will have to tell your OR about any money you come into during your BR year.

I know this is probably not what you wanted to hear and I'm really sorry to hear about your ill health, but rules are rules. At least this amount could cover all your debts and the ORs fees, you may even be able to look into having your BR annulled.

debtinfo

from the horses mouth, you need to tell them about this policy

49.23 Life Assurance
Where a bankrupt has an interest in any life assurance (including critical illness policies) or endowment mortgage policies, etc they may vest in the trustee as part of the insolvent's estate and the official receiver should recover the relevant policy documents and notify the assurance companies of the making of the bankruptcy order. For further details see also Chapter 31.5, paragraphs 31.5.40 to 31.5.49, Chapter 33 - paragraphs 33.30 and 33.62.

arrowarra

Firstly, sorry to hear about your condition. Regardless of the whys and wherefores of declaring the policy to the OR. If you wish to claim you should do so or find yourself possibly having passed a reasonable time to claim in your insurers eyes (so not be able to). I obviously don't know how much debt you had but will the payout cover it and give you some more? yes you should have declared it, but this is why you have paid into the policy. The money isn't yours unless it is over and above your debts. I pay into a critical illness plan and know that however long I am BR for they can claim the money. The reason I took out the policy was for protection and that is what it offers. Tell your OR (and probably face some difficult questions about why it was not declared) and then claim if you can.

dojoman

arrowarra wrote: »

Firstly, sorry to hear about your condition. Regardless of the whys and wherefores of declaring the policy to the OR. If you wish to claim you should do so or find yourself possibly having passed a reasonable time to claim in your insurers eyes (so not be able to). I obviously don't know how much debt you had but will the payout cover it and give you some more? yes you should have declared it, but this is why you have paid into the policy. The money isn't yours unless it is over and above your debts. I pay into a critical illness plan and know that however long I am BR for they can claim the money. The reason I took out the policy was for protection and that is what it offers. Tell your OR (and probably face some difficult questions about why it was not declared) and then claim if you can.

Have you bought your policy back from the OR?