Critical illness cover: The right choice can be ‘tricky’
Wide differences between critical illness insurance policies and the conditions they cover mean individuals should do their homework before settling on a plan.
That is the conclusion of independent financial experts IFA Brokers, who have recommended that anyone seeking critical illness cover should do it sooner rather than later.
"Choosing the right plan can be tricky; policies vary widely in the illnesses they cover and simply opting for the cheapest plan can often offer limited cover," observed a spokesperson for the organisation.
"On the other hand, opting for a policy that covers everything from anthrax to yellow fever may not be the most appropriate. Policies that appear to cover every serious illness imaginable are sometimes merely an excuse for the insurer to charge higher premiums," the representative continued.
With serious illness affecting one in four women and one in five men before they reach retirement age, critical illness insurance is designed to ease financial pressures by paying a tax-free lump sum if an individual becomes seriously ill or disabled.
IFA Brokers noted that rises in claims and the cost of advances in medical technology have led many insurers to cut back on the conditions they cover, or to impose restrictions on what counts as a critical illness.
The Insurance Helpline specialises in obtaining cover for people living with medical conditions
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