Independent financial advice - critical illness cover
If you are considering critical illness cover, make sure you take independent financial advice to guide you through the small print.
Why take out critical illness cover?
Quite simply, everyone should take independent financial advice regarding critical illness cover because unfortunately any of us is vulnerable to falling critically ill at any time. If this happens to you, not only do you have to cope with the implications of the illness, but you have the financial worries of being unable to work. Critical illness insurance is designed to ease the financial pressures by paying a tax-free lump sum if you become seriously ill or totally disabled. You must normally survive at least one month after becoming critically ill before the policy will pay out.
Disclosure
When you take out your critical illness cover it is vital that you disclose any previous illness. If you make a claim your insurer can go back through your medical records, and any illness, directly related to your claim or not, could be a reason for them not to pay out. The onus is on you to make a full disclosure because the insurers won't carry out thorough checks when they sell you the policy. Independent financial advice can take you through the implications of not making a full disclosure, including how insurers can refuse a claim due to a completely unrelated and often minor illness.
What will be covered?
All policies should cover seven core conditions. These are cancer, coronary artery bypass, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke. They will also pay out if a policyholder becomes permanently disabled as a result of injury or illness. However, when you take independent financial advice about which cover is right for you, you should check the small print carefully to make sure there aren't any exclusions that might affect your claim. Some insurance companies are now excluding conditions such as angina, and if you have a family history of a particular disease, this may also be excluded from your personal policy or the premiums may be higher.
What if my claim is refused?
Around 20% of claims are refused, meaning that conversely, 80% of people benefit from critical illness cover. If your claim is refused and you think that it is an unreasonable decision, you can appeal against the decision and take the case to the Financial Ombudsman Service. It is up to them to decide whether you gave insufficient or wrong information when you applied for the policy, or whether the insurers misled you when they sold you the policy.
You can have a brighter financial future. If you would like independent financial advice about bridging loans call our experienced advisers today on 01424 777 156 or e-mail mike.robertson@mraltd.com
