Unfortunately the majority of people out there are unaware that there is huge and fundamental differences between many of the critical illness policies out there on the UK insurance market currently. There are some companies which cover as low as 20 illnesses and some companies cover in excess of 100 illnesses. It’s not only about the number of illnesses covered, as some companies play the numbers game and promote that they cover more illnesses and others do have a lot of illnesses and conditions that are very uncommon and unlikely. The industry stats tell us that 80% of all critical and this claims come from the big five illnesses which are, cancer, Heart attack, stroke, Multiple Sclerosis, and children’s critical illness. So all or a lot of the other illnesses are still important to have but the main thing is to make sure that you have cover for these five illnesses and that the definition of those illnesses is strong.
So there are many different definitions of the big five and many companies have different clauses in their policies making it either more likely or less likely to pay out upon diagnosis of one of these conditions. For example some companies will cover non-invasive main types of cancer, whereas some companies will only pay out for invasive cancer it really does depend on the company and when it when the policy was purchased. Some of the old historic policies have weak definitions, meaning they are less likely to pay out whereas some of the modern products are a lot more likely to pay out.
Think of it like this, do you have the same mobile phone now as you did five years ago? Probably not, the reason for this is new phones are better they have better features and benefits, the screen is better, cameras ect ect. So why do you think that your policy, that you set up 5 or 10 years ago is the best it can be? Why do you think that you are happy with what you have when in reality there is a lot better out there? Do you not want to look at a policy that is more likely to pay out for the same monthly cost or a couple of pound extra? In my opinion you get what you pay for and you should be reviewing your critical illness at least every couple of years.
Or think of it like this, if you were just about to do a skydive and you were offered a parachute which was £10 and a parachute that was £100 which one would you buy? Most people would buy the hundred pound parachute. Why is that? Because the £10 parachute isn’t as good and there is a chance that it may not work as well and you may die when you hit the floor. That simple. We all know, you get what you pay for. Don’t expect when buying the cheapest critical illness policy that it will pay out as well, for as many conditions and for it to be as smooth of a process, as if you buy the policy that is a little bit more expensive.
My advice would also be to go to a mainstream insurance company. I’m not going to mention any names but the main insurance companies that you would’ve heard of not the small companies that started with in the past couple of years. In my experience as a point of claim you are far better dealing with a big mainstream insurance company rather than a small newer accompany.
What about the term of your critical illness policy? Over the years I have seen peoples critical owners policy run out at age 55 age 60 and age 65. I normally ask my clients why does your policy end at this age and most are unsure. Some companies even go up to age 70 now. So this is why it’s normally best to speak to an advisor who can advise you accordingly on the best quality insurance out there with the best definitions and also arranging an appropriate term for the policy not just plucking and expiry age out of thin air as it seems many brokers sometimes can do.
So, to summarise when taking out a new critical illness policy make sure you speak to a broker and ask on the quality of the plan. If you already have insurance in place right now I would recommend you contact us and let us complete a free review to see if I can save you money. I’ll get you a better deal and it costs nothing to find out. You may just enhance your cover massively, meaning you and your family are more likely to get paid out if you were to contract a critical illness. Here at Bespoke we specialise in this kind of thing and we are happy to help Anybody who would like us to. Thank you for reading this blog and hopefully I’ll speak to you soon and help you arrange the right cover for you and your family.