Critical Illness Insurance

[buffymad]

I've just started a critical illness insurance policy which will pay my mortgage payments for so long if I'm off work ill. When my advisor went through the original questionnaire with me, he asked if I'd had this, that and the other within the last 2 years. I mentioned I'd had back problems a while ago but he said that didn't matter. When I received the policy documentation, I had to check all the information was correct. When I read it, it asked if you had any back problems in the last 5 years (as opposed to 2). I did have back problems - just under the 5 year mark now - where I had a herniated disc but because no one took much notice of me, it took forever to have a MRI scan and by the time this all happened, my body "cured" itself and no operation was required. I NEVER had a day off work with it either. Anyhow, thought I'd better declare all this. They eventually came back to me to say they'll charge me the same premium but basically anything to do with my back or around my back is NOT covered.

Slightly annoying but typical insurance company. My question is ... if I waited another few months until the 5 years is over, could I cancel this policy and start off a new one? And then if they asked if I'd had any problems in the last 5 years, I could truthfully answer no!!

Hoping it would never happen that I'd have problems with my back again and have to be off work - but would like to cover myself if I could!

[johnny37]

I like your thnking! And yes it would work.

[johnny37]

Having thought about it, You would have to answer yes to the question have you ever been turned down for insurance. Ask your broker if there is any way round it.

[buffymad]

Will do ...

[Peter Pedant]

I would go with this policy

whatever you had said, they wouldnt have paid out for backs if they found out.


having had and claimed on crit inc insurance (cancer)
it was quite useful to have

[boxtops]

My OH has a pay protection policy - sounds similar but I thought critical illness cover was only for life-threatening illnesses where you could no longer work? His policy paid out for 6 months when he couldn't work due to an knee injury, it saved our bacon in providing enough money to pay our bills. I thought criticial illness cover paid a lump sum if you had a serious diagnosis, not if you were just off sick for a while - or have I got it wrong?

[ThinkIFA]

Critical illness cover is a policy which pays out a lump sum and does not pay a temporary monthly income to cover things such as a mortgage etc so firstly I would check your policy as it may be income protection or ASU.

I personally would take advice from a different broker as your current one SHOULD have informed you that because of your back condition it would be very unlikely that the policy would pay out for any problems with your back.

To simply say 'that doesn't matter' is quite worrying and unprofessional to say the least.

If you do go with a different broker, ensure that they are independent and can compare policies from many different providers. This way they can help find you the best policy.

It is also worth noting that many people worry about having to take a medical or submit a GP report when applying for insurance but the fact is that this makes your case much stronger should you actually need to make a claim on your policy and because the insurance provider knows your medical history, they can tailor a policy which suits you and is priced accurately.

The bottom line is that I would be very careful not to purposely omit details from your application which could have an effect on any claim you may make.

HONESTY really is the best policy and if any broker or IFA tells you differently then I would question their motives for doing so.

[boxtops]

good answer, thinkIFA

[ThinkIFA]

Thank you.

[furrypusscat]

My critical illness policy covers 5 serious illnesses, Stroke, Heart problems, Cancer and I can't remember the other two. As said before, these are one off lump sum payments and do not cover weekly/monthly amounts to cover mortgage etc.
Re honesty, you do need to admit to having previous known conditions as a claim could be void if found out later even if the claim is not related in any way.

[buffymad]

Perhaps I got the policy name wrong! This is one that pays my mortgage (and a bit more) if I'm off ill with something serious, for a number of months. Sorry - too many policies with similar sounding names! My broker went through all the questions with me at the time - from what he'd printed off their website - as completing the paper form there and then would take too long. The website questions mentioned 2 years - but when I received the documentation it said 5 years. So not actually his fault.

He's suggested that after my 5 years is up (start of next year), we'll look into cancelling that policy and taking out a new one. Most policies are the same apparently and most will mention the 5 year time limit - so then I should be covered for everything, including my back.

[furrypusscat]

As your back problem will be a pre existing condition, it could be that when you renew or take out a new policy they may exclude cover that condition or anything relating to your back so you may need to shop around.