Considering an Insurers Claims History before Buying Critical Illness Cover
Don’t let yourself be a victim of having a critical illness insurance claim denied. Know the claims history of any life insurance cover to you are thinking about buying. It will save you and your loved ones a lot a heart ache in the event you need to use your cover. There is no doubt that there are a large number of critical illness claims rejected, in fact, generally 1 in 5 claims are denied payment.
Critical illness insurance, when a claim is accepted pays-out in a tax free lump when a policyholder receives a diagnosis of one of a list of illness and/or conditions that are covered by the policy. The list of diagnosed illnesses is usually quite long and more than often includes the most frequently diagnosed illnesses.
When an insurer denies a claim the most often cited reason is that the policyholder did not fully disclose they had the medical condition at the time of policy purchase. Insurers often stipulate that pre-existing conditions are either exempt from coverage or, if they are covered, there may be a higher premium. The best approach, when taking out critical illness insurance, is to disclose everything (no matter how small or minute you deem it to be) in your history and see what an insurer can offer. This way you know for sure what will be covered when a claim is filed.
It does little good to not be up-font and forthcoming with an insurer, because it will eventually come to light when a claim is filed. Insurers always investigate claims, before paying-out, by reviewing all past medical records. If you had a diagnosis of a critical illness prior to the start of your policy, you can be assured it will be denied, unless you have been allowed to purchase the cover with this information by paying a higher premium etc.
Although many people feel that critical illness insurance is a scam and not worth the money, it does seem that for those policyholders who did disclose a thorough medical history, the cover does pay for claims. If you follow the suggestions below and you are honest with your insurance advisor, you should do well if you acquire a critical illness.
1. Right off the mark, when considering buying critical illness insurance, look at what Standards and Poors and AM Best ratings are saying about insurance companies. This is a splendid way to narrow your search for credible companies.
2. Never start off buying critical illness insurance directly from a Life Insurance Company and this includes your bank. Wait until you have collected quotes from several independent insurers so you can compare prices. Most often, an independent insurance agency agent can get you a lower premium because they do not take a commission and give you their commission back in a lower premium.
3. Always make sure to inquire about the claims history of the companies from which you are considering purchasing insurance. You can do this either on your own or you can request that your insurance advisor do this for you.
Buying Critical Illness insurance isn’t difficult if you follow some of the suggestion recommended listed and you are completely and totally honest about your medical history.