At this time when we all need to ensure every single product or service we invest in gives us some kind of return, you might well be poring over any critical illness cover you already have, or looking at a possible new policy, and scrutinising whether the given policy is actually likely to protect you.
Sadly, scepticism as to whether protection insurance can be counted on to pay out in the event of the policyholder needing to make a claim, isn’t something that has only become a problem with the onset of the cost-of-living crisis. There has long been a fear among many consumers that insurers will ‘do whatever they can to avoid paying out’.
The good news is that a lot of this mistrust is ill-founded, especially these days; in fact, insurers routinely publish their claim payout records, with the data from recent years indicating that critical illness insurance payouts have continued to hover at about 90% or higher.
Still, you might remain anxious to make sure your critical illness cover definitely will pay out if you end up requiring it in your greatest hour of need. So, let’s take a look at how you can ensure precisely that.
Introducing critical illness insurance - and the illnesses it can cover
Let’s go back to the beginning. Critical illness cover, also known as critical illness insurance, works on the basis of providing the policyholder with a single tax-free lump sum in the event of them suffering from a serious illness such as cancer, or a permanent disability arising from injury.
The financial payout, in turn, can be used as the policyholder wishes - it could go towards such things as medical treatment or rehabilitation costs, for example, or even just general everyday expenses. There are no rules dictating how the payout is spent.
The first step of ensuring your critical illness insurance policy pays out, however, will be ensuring the terms and conditions of the policy you purchase make this possible.
One of the most important things to know about critical illness insurance is that it covers the policyholder for certain specific conditions, which will be listed in the policy. So, if you suffer from a condition that is not listed in the policy terms, you can’t expect to receive any payout in relation to this.
The exact illnesses that a given policy covers you for will depend on the specific policy and insurer. Broadly speaking, you should expect any critical illness insurance you look at to cover you for cancer, heart attack, and stroke. When poring over the relevant insurance documents, you should keep an eye out for any exclusions.
What is the process of making a claim on a critical illness insurance policy?
The claims process for a critical illness insurance policy typically works as follows: when the policyholder is diagnosed with a condition that they know their critical illness insurance policy covers, they need to get in touch with their insurer to inform them of this.
The insurance company might request further proof of the illness in its processing of the claim, such as a diagnosis from a doctor who specialises in the given illness, or the insurer might ask for tests to be carried out to show support for the diagnosis. For example, in the case of a cancer diagnosis, a biopsy may be needed.
Hopefully, the above will have given you some reassurance about the likelihood of your claim paying out, in the hopefully unlikely event of you being diagnosed with a serious illness in the first place.
Don’t forget that if you have any other questions or concerns about critical illness cover that you would like to discuss, you are always welcome to call our free no-obligation advice and quotation line! Simply call 0800 316 6917 today to speak to a friendly and informed UK adviser.