Take a look at the tabloid newspapers and you will see story after story in the financial pages of unsatisfied customers unhappy at their critical illness claim not being paid. If they are all saying the same thing then they must be right, mustn’t they?
Perhaps they had a heart attack claim but it wasn’t considered severe enough to qualify for a pay out. Or they had a cancer condition but it wasn’t included in the policy provisions when they took their plan out?
Compared to life assurance then critical illness cover can be more costly and complicated. You are more then eight times more likely to have a critical illness than to die before your retirement but, in the vast majority of cases, the cost is not eight times higher.
The fact is that critical illness cover DOES pay out. If you look at the statistics provided by the leading protection providers they will tell you that they make a pay out in over 90% of all claims. *Association of British Insurers, latest annual data, May 2017
Most providers will cover a range of 45 plus core conditions but the majority of claims are for cancer, heart attack or strokes. A lot of other illnesses or core conditions are also covered in addition to permanent total disability.
One specialist provider , Vitality , covers a much higher number of serious illnesses on a severity basis from anything from 25% to 100% of the sum assured.
No, critical illness cover isn’t simple but figures show that it does pay out. It may not always be cheap but for many it might represent excellent value for money.