Critical Illness Insurance - continued
If the case is centred upon whether or not the insured answered the questions truthfully, how is a smoker defined? It is usual for most insurers to class someone as a smoker if they have smoked or taken nicotine products during the preceding 5 year period. Does this mean if you gave up smoking 6 years ago, youre in the clear? If the insured had declared himself as a smoker, then the premium would have been considerably more - up to 65%, in fact.
The argument, when the case comes up, will probably focus on the fact that this was a simple error, with no intention of misleading anyone and the question will also have to be answered regarding whether or not the fact that he was once a smoker has any bearing on his condition of testicular cancer. (find a loan)
It seems obvious that insurance companies need to define and explain the range of the cover very carefully and explain why applicants need to be totally truthful in the information given.
The publicity surrounding both these cases doesnt improve the publics trust in the insurance industry when it comes to this type of cover. It has to be said that the rejection rate on claims is between 20 to 25%. Insurers vary though and your broker will have the various comparisons and will be able to offer advice on insurers track records and refusal rates. Do use an on-line broker for more information, theyll be right-up-to date and will offer lots of help, not to mention on-line discounts. (mppi)
Critical illness insurance should be a valuable tool for everyone. If the industry can successfully sort out the administration problems and offer clearly understood forms, then people will hopefully regain their confidence and start to use this potentially valuable product. (tenant loans)
If youre unfortunate to be one of the 1 in 5 men or 1 in 6 women who receive a critical illness diagnosis whilst theyre still under retirement age, critical illness insurance cover can alleviate at least the financial aspect of your illness at this time and leave you free to concentrate on treatment and recovery.