Is Critical Illness Insurance Actually That Vital?

It is a very common fact that the odds of developing a critical illness are relatively high. The statistics show that there is a 1 in 5 chance for men and 1 in 6 chance for women that a critical illness will inhibit them from working. Now, critical illness life cover will not alter the fact that you can contract an illness, however, it can simply take away the other potential problems, which are likely to occur such as mortgage repayments et cetera.

The bulk of people will have a life insurance policy, some people will claim they have the paramount; most comprehensive and expensive policy there is accessable from the market place, with full terminal illness cover included. That is all good and fine, but none of this will include a critical illness problem. This is where most people fall, as they minimally do not know the difference. A terminal illness policy is whenever your GP lets you know that you have a maximum of 12 months to live, whilst a critical illness policy can last years without a prediction on your life expectancy such as blindness, deafness or heart attacks et cetera.

However, its not only the bewilderment why many people don’t have a critical illness policy, other reasons include the rate of critical illness life cover premiums. Yes it is more expensive, but it’s a not rocket science that there is a much higher chance of you contracting an illness than dying before retirement age. On the other hand, considering combing you critical illness and life insurance policies will work out cheaper, in fact sometimes it can be that much cheaper, the life insurance fragment is almost completely free.

One of the most important factors in my belief is that many insurance companies turn critical illness claims. Such companies include Standard Life who openly admits that they turn down approximately 20% of all claims. This is aspect is easy to understand and it would make anyone sceptical about wasting money that may never be put to use.

Not all guilt is on the insurance company nevertheless, a lot of the problems are simply reading, rushing and taking for granted errors. Just because one purchases a critical illness policy doesn’t mean that they are covered for all illnesses. Different insurance companies cover different illnesses, and its up to you to know which ones.

Another problem is basic disclosure of all necessary elements within the application form. A very basic example would be to mentioning that you smoke. If you have a heart attack, this could have been influenced by your smoking way of life. The insurance company would have accessed this risk and might have put your premiums up. You could also look at it as if you were committing a type of fraud to save money, like trying to avoid the taxman for instance.

So to conclude, don’t bother leaving out any particulars and don’t forget to reads the insurance book terms and conditions. It is not such a difficult process do to, and im sure many people regret not doing it.

By: Peter Goligher

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Critical illness and life insurance is highly recommended. For full details, visit www.criticalillnessandlifeinsurance.com/Term-life-vs-Whole-life.html