Critical Illness Heaven

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.

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