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Do you have children?

Do you have a mortgage or any other form of loan?

In 2015 Which? stated that 2.6 million people in the UK had pet insurance. An insurance that is not essential, does not provide any money back at the end of the cover, but is bought as a just in case the worse happens to one of our loved ones.

If we are prepared to insure our pets, surely insuring ourselves, spouses and gaining built in children's cover is worthwhile.

Critical Illness Cover claim statistics 2014

Insurer Amount Paid Number of Claims
Aegon Scottish Equitable £28.2 million
AIG Life £13.7 million
Aviva £160 million (inclusive of children's CIC) 2,246
Friends Life £122 million 1,530
Legal & General £161 million
£1.6 million (children's CIC)
Liverpool Victoria £15.5 million
Royal London £134 million 1595

Where data is available, of the insurers shown in this table the total Critical Illness Cover paid out in 2014 was £636 million.

Claim Areas

A Critical Illness policy can cover anywhere up to 46 full claim conditions and up to 20 partial payment conditions if you were to fall ill during the policy term. There is also Serious Illness Cover available with one insurer which will insure for 58 full claim conditions and between 44 and 108 partial conditions, depending upon the policy options that you choose.

The most common conditions claimed for on a Critical Illness policy are:

  • Cancer
  • Heart attack
  • Stroke
  • Multiple sclerosis

All of which feature in the above insurers Critical Illness contracts. It is worthwhile noting that some insurers offer different definitions for the claim criteria of like conditions. For example, Insurer X may offer a full policy claim on any diagnosis of a heart attack whereas Insurer Y will only pay a claim if the heart attack was of a specified severity.

Bad Press

Critical Illness Cover gets some bad press in the mainstream media with examples where people have not received payments due to claims that they have made. We cannot speak about individual cases but we can provide some insight into why some of these may not have been paid.

Often this is due to people claiming on their Critical Illness policy and being declined the claim as their illness did not meet the definition of severity set by the insurer when they took out the cover. It's very important to understand that not every condition is covered and the ones that are, must be of a specified severity. Also it's worth bearing in mind that offering of cover changes over time, for example under 'Loss of Limbs' most old policies require the loss of multiple limbs whereas new policies often only require only one limb to be lost.

The other key reason that Critical Illness Cover does not pay a claim is due to non-disclosure on the original policy application. This may have been intentional or a genuine mistake on the insureds part. You must be wholly truthful to the best of your knowledge when you complete your insurance application, and, inform the insurer of any changes to your health before the policy start date.

What will it cost you?

This will depend upon a number of factors including but not limited to your age, smoker status, health history, occupation, pastimes and any extended travel abroad.

For a 30 year old non-smoking office worker, the following premiums for Critical Illness Cover may be available.

Sum Assured Policy Term Premium* With integrated Life Insurance
£50,000 25 years £12.22 £12.60
£150,000 25 years £32.80 £32.80
£250,000 25 years £52.62 £53.00

It is also worth noting that when you buy Critical Illness Cover it can be beneficial to consider purchasing an integrated Life and Critical Illness policy. This will often make little to no difference to the overall policy cost but gives you an added peace of mind of the value of your policy. It should be noted that most Critical Illness policies require that you survive your diagnosis by 14 days in order to make a claim. If you do not have inbuilt Life Insurance and do not survive past this timeframe then your next of kin will not be able to place a claim on the policy.

If you are interested in Critical Illness Cover and wish to discuss the policies that are available in the current insurance market, please feel free to speak with one of our advisers on 0800 567 7450 or request a quote online here.

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Please feel free to request a quote from us using our online form. As a broker we search a fair analysis of the whole market and will always take your specific risks and concerns into account. For this reason we do not currently offer prices online but will always do our best to reply to you by email, text or phone as soon as possible.

The more information that you can provide us about your health conditions, hobbies, travel and/or occupation the better as this will help us to provide the most accurate indications of price.

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