Critical Illness Articles
3 Mistakes to Avoid If You Want To Claim Critical Illness Cover Benefits
Critical illness cover can be a very helpful form of financial replacement should you become seriously injured or become diagnosed with a dreaded disease. Although most claims for critical illness benefits are paid, approximately 20% of claims are denied! Interestingly, many of those rejected claimants could have avoided a denial decision. If you are in the process of purchasing a critical illness cover scheme, or already have one, here are three important things to consider that can help prevent your future claim from being denied.
1. Changing Schemes
In some denial cases, the claimant had changed schemes at some point in the past. For instance, an insured purchased a critical illness policy 10 years ago. Five years ago, he wanted to increase his coverage amount, but by doing so, required the insured to cancel his first policy and purchase a new one. However, the new updated policy may have contained updated language and included many more exclusions than were in the previous policy. If the claimant made a claim within the new policy for an excluded condition that was not previously excluded, it is likely his claim would be denied.
Changing critical illness cover schemes may be beneficial, especially if you need more coverage or a different type of policy. However, be sure to check with your insurance company about any policy language changes before you make the switch.
2. Not Shopping Around
As mentioned in the previous example, different insurers have varying exclusions in their plans. When you wish to purchase a critical illness scheme you must be aware of everything that is covered in a scheme – and everything that is NOT.
For instance, a woman who has concerns about developing breast cancer should look very closely at the policy language. Although cancer is considered a critical illness under most every critical illness policies, there are exclusions for different types of cancer.
For example, a woman may develop a non-malignant form of breast cancer and detect it early. With the proper treatment, she can fully recover. In the interim of her treatment, she will most likely be totally disabled from working her job. However, if the early detection of cancer is excluded from her critical illness scheme, she will receive no money from a claim.
3. Not Disclosing Every Medical History Detail
Many critical illness claims are denied on the basis that an important medical history fact was not revealed at the time of application. Be completely honest on your form. If your form is filled out by a representative, such as an insurance agent, read the form thoroughly before you submit it. If you omit important medical history details, then the insurance company has the right to reject any of your future claims because you did not disclose the truth on your application.
The industry agrees that denying 20% of critical illness cover claims is too high. However, to protect yourself, conduct your research and be sure to be completely forthcoming about your medical history. Your efforts can increase your chances of an approved claim in the future.
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