Critical Illness Insurance - Does It Really Pay To Have It?

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In recent TV programmes about critical illness insurance, there have been questions raised regarding whether this type of protection actually pays out in the event of a claim. Many insurance companies have recently reported their ratios of claims to payouts in 2008 with many reporting an increase in the number of payouts they have made in this period.

One of the main reasons for non payment in the past has put down to non-disclosure by the clients at the application stage of an existing illness of past illness that should have been disclosed to the insurance company. By not disclosing all health issues to the insurance company this can make the policy invalided as the company will view that they offered terms on the critical illness policy without knowing the full facts.

Over resent years there has been an industry wide effort to reduce non-disclosure which has resulted in less claims being declined. Below are details of Legal and Generals resent press release on their claims and payouts for 2008 which currently makes them the no 1 critical illness provider when it comes to CIC claims.

In 2008 we paid 92.8% of CIC claims compared to 88.2% in 2007
We paid 146 million of CIC claims in 2008, an increase of a third compared to 2007
We've paid nearly half a billion pounds of CIC claims in the last five years alone
Award winning product - 35 critical illnesses covered (12 more than ABI guidelines)

This continuing positive trend for critical illness payments is a testament to the work that the industry has put in to reducing non-disclosure. In the past few years Legal and General have been at the forefront of the ABI changes to the way that all insurers view non-disclosure, with a view to paying out more claims as an industry.

Critical Illness Insurance Quotes
When obtaining Critical Illness insurance quotes it is always important to shop around as premiums for this type of policy can be expensive, especially for people over the age of 40. There are many online life insurance comparison websites, which allow to obtain quotes from all the leading insurance companies on one neat page. Once you have done this make sure you compare the number of critical illnesses covered as this varies from insurance company to insurance company. An example of this is Zurich who currently covers 31 illnesses and at the top end Bupa currently covers 42 illnesses

Critical Illness Insurance Advice
If you find this all confusing you can always speak to an independent financial advisor, there are many firms now on the internet that offer phone based financial advice so you don't have to leave your chair to get the right critical illness cover.


About the Author:
Jason Haines is a protection and mortgage advisor at godirect.co.uk, one of the UK's most trusted information site about personal finance. They have details of the latest Life Insurance rates, and offer free critical illness insurance quotes for family protection.



Article Originally Published On: http://www.articlesnatch.com


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