Critical Illness Articles
What Should Be Included with Critical Illness Cover ?
Critical illness cover is a wise income protection insurance policy that provides a lump sum benefit if the insured should become critically ill or injured as defined in the policy. However, to the disappointment of many, there are an abundance of exclusions in most policies that become reasons for a denial on a future claim.
To review the core conditions that are included in most policies of most insurers, they are :
- Cancer
- Heart attack
- Coronary bypass surgery
- Multiple sclerosis
- Stroke
- Major organ transplant
- Kidney failure
We have discussed the primary “core” conditions that are included in most critical illness policies, but what other conditions and enhancements should insurers put into their policies ?
Exclusions
Although most critical illness covers will contain these definitions of critical illness, they do come with exclusions. Mainly, if an individual is diagnosed with one of these conditions but is able to make a full recovery, or is not completely disabled, the condition is not included.
However, most major insurance companies will include more that these core conditions in their critical illness products. Usually, policies may contain up to 30 or 40 acceptable conditions.
Additional Conditions
Along with the core conditions, many independent financial advisors say that a quality critical illness cover should contain additional conditions such as :
- Additional heart disease causing disability
- Alzheimer’s Disease
- Parkinson’s Disease
- Bacterial Meningitis
- Benign brain tumors
- Total and permanent blindness/deafness
- Coma
- HIV Infection
- Loss of limb
- Paralysis
- Traumatic head injury
- Third degree burns
Partial Benefit Payout
Many critical illness patients have become frustrated over the years, as more and more claims are denied due to only partial disability from a defined illness or injury. However, some insurers are including more payout options with critical illness covers for accidental hospitalization and partial disability from a defined disease.
The partial payout may range from 20% to 25% of the full benefit, up to a maximum of about £25,000. These partial payouts include recoverable “core” diseases, such as breast and prostate cancer that is detected and treated early. Diagnosis of these conditions will usually result in surgery to remove the tumors, or even a full mastectomy in a breast cancer situation.
This is a big victory for men and women who suffer from early breast and prostate cancer, as these are the most frequently cited conditions for claims.
Children’s Cover
Many parents wish to insure their children in their critical illness covers. Most insurers will offer children’s cover with certain exceptions. However, recent changes led by Axa Insurance have increased the number of eligible children from 2 to 4, and the maximum partial benefit for children’s claims from 25% to 50% of the total benefit.
As insurers continue to become more flexible in their critical illness cover language, more and more people in the UK will likely be interested in the policies. As strict as they have been in the past, it is clear that consumers want more options and more conditions that will be eligible for claim payout.
 |
|