Pre-existing conditions
If you
already have an existing critical illness policy, you might find that by replacing a policy, you
would lose some of the benefits if you have developed any illnesses since you took out the first
policy. It is important to seek professional advice before considering replacing or switching
your policy, as pre-existing conditions may not be covered under a new policy.
Lifestyle changes
Some policies allow you to increase
your cover, particularly after lifestyle changes such as marriage, moving home or having
children. If you cannot increase the cover under your existing policy, you could consider taking
out a new policy just to 'top up' your existing cover.
Defined conditions
A policy will provide cover only for
conditions defined in the policy document. For a condition to be covered, your condition must
meet the policy definition exactly. This can mean that some conditions, such as some forms of
cancer, won't be covered if deemed insufficiently severe. Similarly, some conditions may not be
covered if you suffer from them after reaching a certain age – for example, many policies will
not cover Alzheimer's disease if diagnosed after the age of 60.
Survival period
Very few policies will pay out as soon
as you receive diagnosis of any of the conditions listed in the policy, and most pay out only
after a ‘survival period.’ This means that if you die within this period (even if you meet the
definition of the critical illness given in the policy), the cover would not pay out.
Range of factors
How much you pay for critical illness
cover will depend on a range of factors, including what sort of policy you have chosen, your
age, the amount you want the policy to pay out, and whether or not you smoke.
Permanent total disability is usually
included in the policy. Some insurers define ‘permanent total disability’ as being unable to
work as you normally would as a result of sickness, while others see it as being unable to
independently perform three or more ‘Activities of Daily Living’ as a result of sickness or
accident.
Activities of daily living include:
- Bathing
- Dressing and undressing
- Eating
- Transferring from bed to chair and back again
Make sure you’re fully covered
The good news is that medical advances
mean more people than ever are surviving conditions that might have killed earlier generations.
Critical illness cover can provide cash to allow you to pursue a less stressful lifestyle while
you recover from illness, or you can use it for any other purpose. Don’t leave it to chance –
make sure you’re fully covered.
