Critical Illness Policies Contain Exclusions

Category: Finance, Insurance.

Critical illness insurance policy may vary from one company to another. Critical illness policies contain exclusions.

You may find a critical illness in one policy but may not come across it in another policy. Exclusions are things which are not covered by the insurance company. They can be classified as follows: Aviation, Failure to follow, Drug abuse medical advice, HIV/ AIDS, Hazardous sports and pastimes, Self, Living abroad- inflicted injury, War and civil commotion and Criminal acts. The ABI has published a representation of the most common exclusions. Your claim could be rejected should you try to claim for one of these. Furthermore, as per the ABI, the data in key features leaflet may help you compare different critical illness policies from different companies. It therefore remains essential that you read the key features of your critical illness policy before signing an agreement.

The main use of the key features leaflet is that it can show you which critical illnesses are covered and what exclusions the policy carries. Remember that not all critical illness insurance companies cover the same illnesses and have the same exclusions. One more reason why the key features leaflet is important is that it may tell you whether your premium payment rate may rise and whether you have to let your insurance company know if you change work. Thus, when you compare separate policies look for the core illnesses covered. Therefore, cover for the core conditions can be more important than cover for the other conditions. Most critical illness policies provide this section clearly because these cases could be most likely to happen. To facilitate the task of comparison, the key features leaflet had been put in alphabetical order with each and every critical illness covered listed.

You may be able to choose critical illness insurance combined with life insurance. Moreover, a broad range of critical illness policies exist from which you can choose. This type of policy pays out a tax free lump sum either if you die or suffer from a critical illness. That is, it will not continue to provide a critical illness cover if you have already claimed for life insurance. Usually as the payout is made, the policy may cease. Additionally, critical illness insurance can also be added to mortgage if you want to protect your mortgage.

It is important as well that you know for how much time you want the cover. You may also want to buy a standalone critical illness cover if you already possess some flavours of life insurance. For example, you can easily judge it on the number of years remaining to pay your mortgage if you want a critical illness with mortgage related plan. By doing so, you can keep the cover as long as you need it. Otherwise, you could take critical illness cover for no set limit. There are perhaps other policies that include critical illness cover for your children.

Your insurance company could help you sort out what critical illness cover may suit you best as well as clearing any doubts you may have about the policy you have selected. If you have a family, this plan could be worth consideration.