Dodgy critical illness cover!!!

Sid2177

Hello peeps,

I am soon due to be come the proud owner of my first house and obviously want to make sure that I'm covered should the worst ever happen.

The reason why I have named this thread "Dodgy critical illness cover!!!" is because I was recently talking to a lady who had had breast cancer. She was insured with a certain women only insurance company for that particular reason, however when the time came and she had to make a claim, and after taking all her money, they refused to pay out because it was the "wrong type of breast cancer".

Does anyone know of any honest insurance companies (I'm sure there must be at least 1) that don't have these crappy get out clauses or alternatives?

I'm sure I'm not the only one that thinks this is out of order, and insurance companies shouldn't be able to do this, but what can you do. Anyway is there actually any point in getting cover like this or is it just throwing money away?

Thanks in advance.

RickyC_IFSWP

Each insurer has their own definition of critical illnesses so they all have clauses and exclusions. The Association of British Insurers (ABI) have standard definitions for common critical illnesses and the very best critical illness policies will have definitions that exceed this standard (known as ABI+).

Of course any illness is disheartening, however although I'm not a doctor, I imagine the breast cancer was probably not a severe/progressive type to have met the definitions. Given that breast cancer or cancer is general is one of the highest claim for critical illness policies, clearly insurers will have stricter definitions for it.

As you've probably guessed, I am pro critical illness covers and many unfortunate people have benefited from the payouts to relieve their financial burdens during difficult times.

Alternatively, you could consider Income Protection (on top of your critical illness cover) to give you more peace of mind as it works like a long-term sick pay that covers for almost any injury or long-term ill health which affects your ability to work.

dunstonh

The reason why I have named this thread "Dodgy critical illness cover!!!" is because I was recently talking to a lady who had had breast cancer. She was insured with a certain women only insurance company for that particular reason, however when the time came and she had to make a claim, and after taking all her money, they refused to pay out because it was the "wrong type of breast cancer".

What she had was not a critical illness cover plan. it is a cut down hybrid plan with limited focus. A budget option offered by a company.

Does anyone know of any honest insurance companies (I'm sure there must be at least 1) that don't have these crappy get out clauses or alternatives?

It is important to not mix up product types. There are some naff plans out there. Tend to be with niche providers and a type that is not available in the mainstream. Usually best avoided and sticking to the mainstream where the options are usually a lot better.

I'm sure I'm not the only one that thinks this is out of order, and insurance companies shouldn't be able to do this, but what can you do.

you get what you pay for. If you buy a budget option with limited focus and suffer an illness you cant really complain when it doesnt pay out for not covering the illness.

Anyway is there actually any point in getting cover like this or is it just throwing money away?

I am sure this lady you spoke to now wishes she had CI cover instead of the plan she had.
You are asking about CI cover. The lady you spoke d

Sid2177

Thanks guys, you've made a lot of sense. Initially it seemed to me like insuring your car and then after an accident the insurance company turning round and saying "well, we know you said your car is red but it's not the red that we thought it was".

I think the reason it annoys me is because my job is to help people that are unable to work due to an illness or disability and don't know about the benefits system or what help is available to them. Then on the flip side there's plenty that can work but would rather work the system. Whether that's their fault or the systems fault for allowing it I wouldn't really like to say.

It seems so easy to get cover for just about anything these days but if you don't know the full ins and outs, even if you have read the miles small print, it is easy to get misled. Obviously I need to do some serious research into it all.

Thanks again.

magpiecottage

Sid2177 wrote: »

It seems so easy to get cover for just about anything these days but if you don't know the full ins and outs, even if you have read the miles small print, it is easy to get misled.

It is in the form of a "Key Facts" document, which will be clear, fair and not misleading (because if it doesn't meet those standards FOS can award redress - including forcing an insurer to pay up to £150,000).

dunstonh

I am not a fan of these well women's insurance plans. I just cant see the point of buying a cut down version of a plan often at equal or greater cost than a full coverage plan. Although as an IFA, I would know the differences. I suspect most people buying the cut down plans dont have a clue about the differences. Plus, you tend to find that these non-mainstream plans are sold under pretty low skilled/qualified salesforces.

ACG

Its for this reason I recommend both Critical Illness and PHI (Income Protection)...

Critical Illness will pay out for various types of illnesses however they have definitions, so the illness has to be a to a certain level in some instances.

PHI will pay out if you have to be off work due to illness - ie it is not limited to what sort of illness you have.

The downside to PHI is that it will not pay a lump sum, so if you want to go private for instance, you may be relying on a lump sum of money. Doing a bit of both in my opinion is better than throwing your full budget at one or the other.

InsideInsurance

Sid2177 wrote: »

Thanks guys, you've made a lot of sense. Initially it seemed to me like insuring your car and then after an accident the insurance company turning round and saying "well, we know you said your car is red but it's not the red that we thought it was".

I am not keen on the name "critical illness" as its not as broad as that but generally a lump sum paid out on only a specified list of illnesses with a stipulated severity level. Get something not on the list or that doesnt meet the specified levels then it doesnt pay out even if it does make you critically ill.

As always, read the policy before buying it, not all policies are equal and not all cover the same conditions.

Personally I;ve always found PHI (income protection) much better as its a simple case of you being well enough to work or not but even with this there are some that specify "a job" and others that are "your job".