• Rachael Panteney

Critical Illness Myths Debunked - Part 2

Part 1 was last week. Read on for Part 2

Recap: Also known as Serious Cover, this is an insurance which covers specific illnesses listed within a policy. If you get diagnosed with one of these illnesses, a critical illness policy will pay out a tax-free benefit to you – either as a lump sum or a monthly payment.

3. “It’s too expensive”

Generally, the younger and fitter you are, the cheaper the cover, however, the cost of cover changes due to various factors, these include:

• Age

• Health

• Family medical history

• If you are a Smoker or Non-smoker (many insurers count vaping as smoking, even if nicotine free)

4. “Life insurance companies never pay-out”

New figures released by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out more than £5.3 billion in protection claims in 2018 – a £200 million increase year-on-year. ****

Nearly every protection claim made was paid (97.6%). There are 2 reasons why claims may not be paid;

• The illness may not meet the definition set out in the policy documents. That doesn’t mean the claim wont ever be paid, just that it might be a little early. Conditions like rheumatoid arthritis need to meet a specific severity in order to allow a claim to be paid.

• Claimants had failed to disclose all relevant information about health and/or lifestyle at time of application – this is called misrepresentation. The best way to avoid this is to take extra time and care to make sure you answer all questions fully and completely.

To find out more about the conditions covered, what level of protection you need and what this may cost contact us on 01323 436680 to book an appointment.

Can you really afford not to?

#Insurance #Protection #Seriousillness #Criticalillness #childrenscover #protectyourself #mortgage #lifestyle #firsttimebuyer #homemover #remortgage #financialadvice #willowtreewednesday #willowtreefinancialservices

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