Should A Critical Illness Policy Payout On Value At Point Of Claim?

[araspberryripple]

A claim was made on a critical illness policy in December 2014! In February 2015 a policy review requested a higher premium for the same amount of cover but this was not financially feasible? The policy has paid out at the reduced rate and not for the value of the policy at point of claim? Is this correct?

[Dogsbody2]

As far as I know, there are two types of policies - fixed and reviewable. Fixed premiums stay the same for the life of the policy, which as I understand it, can last for a defined number of years.
Reviewable policy premiums may increase during the life of the policy.
If you have one of these, and you have declined to pay the enhanced premium at a pre-determined renewal anniversary, then it is highly likely some reduction in benefits payable will have occurred.

More information is required to fully understand this. These policies are complex and should really be subject of independent advice before being taken out - I'm not sure whether they are though.

[ToraToraTora]

yes. You declined the higher premium, any claim will be reduced proportionately.

[granny grump]

Surely if the claim was made before the premium increase the claim should paid aas at the date of the claim a meringue?

[scorpiojo]

Meringue..mmmmmm

[ToraToraTora]

yes granny is correct I got the dates reversed.

[Dogsbody2]

No. Granny is not correct if it was a reviewable policy. You can't just turn these policies off. They run for a defined term of several years.

But as is so often the case the OP just disappears into a black hole

[granny grump]

Sorry jo I was trying to be funny and failed Am I wrang - (Scottish accent)