Critical Illness Heaven

Four years ago when James Halliday was told he had a brain tumour, life was wouldn’t ever be the same again but following a traumatic operation his recovery has been excellect. However he lives with the thought that the tumour could re-occur at any time in the next ten years. He will also have to take tablets to reduce his epilepsy for the rest of his life.

Mr Halliday, who is now forty one, thinks he is the “luckiest man alive” to have come through it. However he is no longer able to get life insurance.

Mr Halliday and his partner have a 4 year old son, Ethan, and a year ago they moved from Manchester to Bramhall in Greater Manchester. The family remortgaged £85,000 with the Abbey National but James was unable to protect the debt with life assurance cover in his name.

“The Lloyds TSB’s underwriters would not give me life assurance. My wife, Sheila, has critical illness insurance (CIC protection) and life assurance cover for the whole mortgage,” he says.

The possibility of getting life assurance are extremely unpromising if a request is put forward in the first two years of succumbing to a dangerous form of cancer or having had a heart attack. Should the patient make a complete recovery within a set period, typically between three to five years, insurers will consider covering them again but might put a “loading” on to the rates. In lots of situations this could be as much as 8 times the premium that other healthy people pay.

During the first four years following an operation, someboby in James’s situation would be refused cover. After this set period, life cover should be easy to get “but at a highly priced premium” and cheap cic insurance protection will be almost impossible.

The life insurance company which underwrites for high-risk clients (those people who play hazardous sports or with serious medical problems is the Special Risks Services. It claims to have a achievement rate of 75 per cent when putting its clients with insurance companies. Special Risks Services declared that it will be a further year before they may be able consider an application from Mr Halliday. Rates would definitely be steep because of his epilepsy and because there would still be an increased mortality risk compared to the general population. Unless a policy purposely excluded cancers, James will without doubt be refused any critical illness insurance cover.

Therefore as a result of independent financial advice, the Halliday family has saved up 8 months emergency money and put it to one side, effectively a self-insurance cover.

And there is a bit of good news for James. Allied Irish, his previous mortgage provider, has permitted him to keep fifty-five thounds pounds of life life insurance from an existing policy – although at a cost of 50 pounds a month. This type of policy is called a Guaranteed Insurability Option and means the insurers will allow the insured up to half of the original amount assured without underwriting.

It is not just severe medical complaints that can influence  life assurance. Simon Harris, chairman of Malvern Sports Club had his first application declined because of a minor illness. Numerous trips to doctors and no end of phone calls to Scot Prov they  sorted things out. Mr Harris’s counsel to anyone in the same boat is to make an application first and assist it with a full medical report.

Bookmark It

Hide Sites

Summary:
This is the 2nd of two related articles about Accident cover and other interrelated varieties of personal insurance. If you find this article helpful you may like to read Health Insurance Dont Break The Bank.

Check up to see whether your company supplies accident cover for you? Many firms do without the employee being aware or remembering. Therefore if you feel the need for this kind of insurance cover, it is well worth finding out.  Also remember that accident insurance may incorporated in your life assurance cover.

If you already have a life insurance p0licy and have enough money to strengthen your protection, then it may help to consider a fairly insignificant extra premium to buy something like an income protection policy, which would mean that you’d receive a monthly income whilst off work or even until retirement.

Income protection insurance policies have be developed to provide you with a sum of money each month, whilst you are not able to work because of an accident or illness. They are constructed to pay out until you reach retirement age. There are other alternative insurances which come under the name of Accident and Sickness Insurance, that will pay out for a set period and many of these also include cover for unemployment.

The Financial Standards Agency keep a careful eye on the way in which consumers buy general insurance policies and have stated “There may be a risk that customers buying it may not understand the limitations ….” 

Also, it was accentuated that they were concerned regarding the low rate of claims on these insurance policies which could be the cause of expensive pricing and a lack of competition. In another FSA investigation, this one based on “cold calling” selling procedures, the regulator was judgmental of the extremely poor sales standards for various policies and warned that the advantages of accident insurance were “occasionally inflated”.

The low rate of claims, refered to above, represents the proportion of money paid in claims, against that received in payments is usually low.
As a result, it’s questionable that pure accident insurance cover would assist you enormously. It would seem to be a lot better then, to use an insurance product that amalgamates disability or death insurance within a really all-inclusive online life assurance cover.

A lot of people are unaware that many of the normal credit cards, such as Capitol One, Barclay card, Natwest, Virgin Money to name a few, supply “travel accident” cover of up to £110,000, that covers you for death or accident which takes place while in transit which is paid for using their card.

When you have a moment, it would be prudent to sit down and see just what you have in the way of insurance. As perceived, some, in fact a lot of, forms of insurance cover have various benefits and it may be a good time see just what insurance cover you do have and make sure that your circumstances haven’t changed your insurance requirements.

You’ll get all the help that you need by going on-line and checking out a specialist adviser, you can assess your individual needs, test any uncertainties you have concerning new insurance covers and generally explore a very varied industry to discover precisely the right policy for you and your loved ones.

Bookmark It

Hide Sites

Summary
In this article we explain  how Financial Protection Insurance may become more popular with the insurers at long last making constructive steps that could with a bit of luck be successful.

A lot of trained  advisors would concur that Financial Protection Insurance is vital  to a good number of families, whether it may be a  precaution in the event of premature death, prolonged illness, loss of employment (especially in the present economic climate), or cover for an accident.

Cheap Life Insurance Cover is the basis of all financial assurance to ensure a lump sum that is not taxable, in the event of a death or for cover for a mortgage.  Unhappily, a proportion of other Financial Protection Insurance types, do not do not have equivalent reliable qualities and have been labelled as being miss-sold.  furthermore, based on what we are now aware, critical illness cover has suffered due to incredible omissions from policies making it feasible for insurers to reject many claims, as genuine as they may be.

However, a little faith was reinstated when Norwich Union gave details on the conclusion of claims on Critical Illness Insurance policies on their 1/2 yearly figures. Critical Illness claims were being rejected because clients did not reveal their full health background.  As a result Aviva  says that in the last six months the amount of turned down claims has fallen significantly from 6.8% in the last year, to 1.5 per cent.

Why?  We think, not simply  Legal and General but all cheapest mortgage life cover insurance companies, because of harmful publicity, have been put into a situation whereby they must reduce the number of claims that are rejected. Does this show how strong the press can be?  Debateable perhaps – you may think we are dubious but we believe there are other factors that encouraged the insurers to make changes.  Lately, as a result of bad press, sales of Critical Illness policies  have dropped which in turn has visibly impinged on the insurers profit. This was probably the catalyst that promoted the change!

Friends Provident, Norwich Union, Scottish Provident and Axa have introduced some prominent changes specifically created to reduce their rejection rates. To begin with, they silhouette plainly that all medical disclosure, however trivial a visit to a Doctor may have been, must be revealed. Friends Provident, together with others will get a medically trained person to telephone every candidate to discuss all the particulars of their medical history. If the insurance policy then goes on risk, a number of policyholders are being informed that it is important that they provide complete medical disclosure and they are permitted to add or correct any details on their application form.

The insurer may then re-assess the risk and if it is believed to be increased the monthly payments will most likely be increased – which looks more reasonable and ultimately more appropriate than paying the original payment then having a claim rejected due to non-disclosure of medical information.

This action should have been applied by the Insurance Companies years ago as the public’s concept of Protection Insurance has  deteriorated by their somewhat strange approach. On a positive note, there is an obvious and essential need for protection insurance so we can hope that it is able to reinstate faith and then the esteem it justly deserves.

Bookmark It

Hide Sites

Summary
Lots of people with critical illness insurance don’t really appreciate how these plans function. There are calls for tougher rules on the marketing of such insurance. Consumers need more information on products which best suit their individual needs.

The main financial regulating body published its worries four years ago that many thousands of people with life cover failed to comprehend what their policies covered. Those worries are still valid.

The Financial Services Authority announced that industry data showed that insurance providers, including supermarkets, financial advisers, banks and insurersoften made negligible effort to establish if the insurance was adequate and little explanation was given to clients of how the cover work. While most companies were working to stick to better standards, others continued offering an inadequate service.

In the event that a stroke, cancer, heart diseaseor other listed life-threatening illnesses is diagnosed, critical illness cover, cheap life insurance pays out a capital sum. Often, it is customers who are concerned about paying off mortgage, debts and loans if they should be unable to remain working, who purchase this cover.

There are two kinds of policy: those policies where the premium is fixed for ever (a guaranteed premium) and those where the payments increase over time. Figures from the Association of British Insurers (ABI) show that, in total, there are more than of five million insurance plans covering 11 million people. An average policy will pay out sixty seven thousand pounds.

These “protection” policies have proved to have critics. While the plans can bevery useful, these “protection” insurance policies have proved controversial and industry critics say that not many policyholders make a claim. There are no statistics available on the numbers of claims made contrasted with the total money spent on the policies. The Financial Services Authority review did reveal, however, that on average, 25% of the claims made are invalid.
In one situation recently a customer was found to have with cancer but medical consultants could not identify which one. The plan holder was informed it was unlikely the cancer specialists would know for certain until he seven feet under.

Until a diagnosis was available, his insurance policy would not pay out. The policyholder’s childern appealed realising that should he die, the insurer would pay out a life insurance policy worth twenty thousand pounds rather than the critical illness policy which was worth more than £85,000 as only one policy was scheduled to pay out. The argument with the insurance provider caused much more stress to the client. After a report in the press, the insurance company agreed with the claimant and paid out on the policy.

The Consumers’ Association which publishes Which?,  said it thinks the situation is   more serious than the Financial Services Authority claims and that sales of critical illness plans are at the centre of a far-reaching mis-selling scandal.
John Beer, principal policy adviser, says brokers, commission-hungry advisors and finance companies, saw a chance to make considerable earnings. He said Which? had forecast the mis-selling that was rampant in the selling of pensions and payment protection insurance and would be replicated in the critical illness sector.

His predictions are on the back of complaints in in government regarding the mis-selling of critical illness insurance policies. Max Bing, the MP, says the FSA’s study demonstrates there is a high risk that insurance are being sold to consumers who fail to understand what they are buying or who don’t even need them. The MP wants the Financial Services Authotity to make changes to its rules that would limit sales to specially regulated financial advisers working under stricter FSA guidelines.

Bookmark It

Hide Sites

Summary:
This is the 2nd of two related articles about Accident insurance and other interrelated types of personal cover. You may also wish to read Health Insurance.Dont Break The Bank

Have you checked whether your boss provides accident cover for you? Lots of firms do without the employee being aware or remembering. Therefore if you want this type of cover, it is well worth finding out But remember that accident insurance cover may incorporated in your life insurance cover.

If you do already have life cover and have enough money to top up your insurances, then it may be beneficial to think about a fairly slight extra premium to purchase something in the vein of an income payment protection policy, which would mean that you’d receive a monthly income whilst off work or even until retirement.

income replacement insurance policies have be moulded to provide you with an amount of money each month, whilst you are off work because of an illness or accident. They are constructed to pay out until you reach retirement age.

here are other insurances which go by the name of Accident and Sickness Insurance, that will pay out for a restricted number of years and a few of these also contain cover for unemployment.

The Financial Standards Agency keep a careful eye on the way in which the public buy general insurance policies and have warned ”There is a chance that clients buying protection insurance may not comprehend the limitations….”

Also, it was stressed that they were worried regarding the low amount of claims on these insurances which could be the result of expensive pricing and a lack of competition. In another FSA investigation, this one built on “cold calling” selling techniques, the regulator was critical of the particularly poor sales ethics for various products and cautioned that the advantages of accident cover were “occasionally inflated”.

The low rate of claims, pointed out above, indicates the amount of money settled in claims, versus that received in payments is generally low.

Thus, it’s unlikely that pure accident cover would assist you enormously. It would appear to be a lot better then, to use a product that mixes death or disability insurance within a really broad life asurance cover

Most people do not know that many of the ordinary credit cards, such as Virgin Money, Egg,  Natwest,Halifax All In One, Capital One and  Barclay card to name a few, supply “travel accident” cover of up to 120,000 pounds, that covers you for accident or death which takes place whilst on transport which is aquired by using their card.

When you have a little spare time, it’s a good idea to sit down and find out just what you have in the way of insurance policies. As we’ve seen, some, in fact many, kinds of insurance cover have numerous benefits and it may be right time to go through just what insurance cover you do have and make certain that your present lifestyle hasn’t altered your insurance cover needs.

You’ll get all the help that you need by visiting the internet and checking out a professional insurance, you can evaluate your particular needs, verify any reservations you have regarding new policies and generally search a very wide industry to discover exactly the right insurance policy for you and your family.

Bookmark It

Hide Sites

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

Bookmark It

Hide Sites