Severity based Critical Illness policies
There have been many stories in the papers over the past few years of insurers not paying out on claims against Critical Illness policies due to illnesses not being of ‘the right type’. Well now one insurer has developed a severity based claims policy to try to combat this.
Severity based claims means that the payment is directly linked to the severity of the condition or illness, therefore claims can be paid out quicker that traditional critical illness policies, as well as providing a continuation in cover for future and repeat events.
Some people criticise that the policy can be too complicated, yes it is complex but not complicated as your professional adviser will be able to explain the benefits to you in an easy to understand manner. With Critical Illness plans cost should not be the main motivating factor, as different priced plans have different exclusions, so value for money is the key and finding the right plan to suit our clients’ needs.
Our customer feedback has led us to believe that fairness in the event of a claim is one of the most important factors to our clients and most would prefer to gain a smaller payout for a less serious critical illness rather than nothing at all.
Plus the insurer has been innovative in the way it also offers potential discounts is policyholders adopt a healthier lifestyle, via gym memberships and healthy eating bonus points. The insurer feels that in the long term if people choose a healthier lifestyle claims will be reduced as an added benefit to them.
Because they are a more complex type of critical illness plan they are not available via price comparison sites, as advice should be gained to confirm suitability.
Severity based Critical Illness policies will not be right for everyone, but for the majority they are a common sense solution to ensure a claim is paid.
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