Property News · December 7, 2013

Critical illness insurance: The neglected cover that could be crucial


Critical illness cover – which pays out if you get a life-threatening illness – has a bad reputation. But is it time to look again?Critical illness cover used to be the bad boy of the protection insurance world. This is a type of insurance that should pay out a lump sum if you are diagnosed with a life-threatening illness such as cancer or heart disease. The money is tax free and can be used in any way you like – to pay a lump sum off your mortgage, enable you to stop working, or buy private medical care. You decide how much you think you’ll need when you take it out.In the past, these protection policies were slated for having too much wriggle-room, allowing insurers off the hook when it came to paying claims – and insurers were notoriously secretive about how many claims they let through. Not surprisingly, insurers found critical illness cover increasingly hard to sell, and so have been forced to clean up their act. First, they started to declare how many claims were successful – they say that, on average, more than nine in 10 are now met. Then they increased the number of illnesses and conditions covered. Some covered fewer than 10, but the list now typically covers 40 to 50. Continue reading…

Source : theguardian.com
Read more…Critical illness insurance: The neglected cover that could be crucial

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