Critical Illness insurance On the Critical List?


by Michael Challiner

Critical illness insurance cover can be an absolute God-send if you’re unlucky enough to need it, but read on to make certain you get it right. The point of critical illness insurance is that it pays out a tax free lump sum if critical illness is diagnosed. There’s a lengthy list of illnesses which will be listed on the policy and which qualify as “critical”. The list commonly starts with cancer, heart attacks, strokes and major organ transplant but a great many other illnesses are normally covered. Over recent years the number of diseases covered by a typical policy has increased to more than 25. There are some concerns regarding the number of claims which are rejected due to non-disclosure. This usually happens when the insurance company consider that the policyholder has failed to tell them something about a previous medical condition which they consider important. Rejection rates average around 25 as shown in the table below:-Published rejection rates for critical insurance cover. Insurance CompanyPercentage of critical illness claims rejectedScottish Equitable Guardian10Scottish Provident11Scottish Widows18Prudential20Standard Life20Skandia21Bupa21.5Legal

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