Critical illness insurance

babycakes028

Was looking for some advice please! We took out life / critical illness insurance with our first mortgage 15 years ago and stupidly didn’t realise that it only runs with the term of the mortgage. So I have a few questions

1- can it be extended?
2- my husband was diagnosed with pulmonary sarcoidosis, health deteriorating quickly, no real treatment but a lung transplant had been suggested. Policy small print looks like it says critical illness is only if life expectancy is less than 12 months- am I right in thinking we are not covered?
3- As this policy only lasts another 10 years, he is 36 And has this diagnosis- is there any policy you can suggest!

Thanks very much

OnanTheBarbarian

Have you submitted a claim to your insurer? That would be the first move to make.

No point looking for another policy to deal with the current healthcare issue as any new policy would exclude a pre-existing condition.

I had a critical illness claim 18 months ago when diagnosed with Stage 4 bowel cancer, paid out without quibble within 14 days, much to my surprise. Had been paying the policy for about 13 years.

Policy wording will obviously differ between providers. I was with HSBC Life.

babycakes028

Thanks, I haven’t yet because of the life expectancy 12 months line. I rang them this afternoon to ask for updated policy docs as it has changed from friends provident to Aviva.

Novice_investor101

You won't be able to take out a new critical illness policy to cover an illness that's already happened. A new life insurance policy will exclude pre-existing conditions, if you can get one at all.

The "less than 12 months to live" part usually refers to terminal illness. Most life insurance policies have it as part of the life insurance cover, so they can pay out sooner rather than waiting til the inevitable has happened.
Critical illness is not the same as terminal illness. I'd re-read your cover docs (or call Aviva/friends provident) to find out if you do have critical illness on the policy or just death/terminal illness.

babycakes028

Thanks, I’ve looked at the original policy and it looks like we have special events option- what is this??? Terminal illness benefit and an option to increase and extend if we do that with the mortgage.

I think I need someone to read the policy and advise- where do I go!!

jaybeetoo

Phone your insurance company! They will explain it.

Weighty1

As mentioned above, it sounds like there is terminal illness included on the plan, not critical illness. Critical illness pays out if you are diagnosed with one of a specific list of conditions and it matches the minimum severity level required to meet a claim. Terminal illness, as you said, only pays out if you have a life expectancy of less than 12-months.

In regards to your questions, typically you cannot extend a term assurance plan without going through the underwriting process ie. answering all the health questions again.

You are covered but from what you say, only for death or terminal illness. This will still be the case even with your husbands diagnosis.

Some short term income protection plans will cover pre-existing medical conditions once the plan has been in force for at least 12-months. These sorts of plans only normally pay out for a maximum of 12-months but obviously, having 12-months income in the event of being unable to work can help massively. Obviously, this is dependent on your husband currently working now. If not then unfortunately I can't imagine how you are going to arrange new insurance as I think it is highly unlikely critical illness would be offered and even life insurance may not be offered or would only be offered with a significantly increased premium.

dunstonh

Some plans have guaranteed insurability options on specific events. This is where the insurer will offer cover to you. However, the premium will be based on current health. So, whilst they will offer cover, it will likely be a significant premium