| Back in 1999, the Imperial Cancer Research Fund | | | | refusing the claim. |
| stated that one in every three people in Britain will | | | | It appears that the non-disclosure may not be |
| be diagnosed with cancer at some point in their | | | | related to the critical illness. Claims have been |
| life. With rapid medical advances the chances of | | | | turned down for various reasons, including the |
| survival from a major illness are improving but the | | | | case of a woman with breast cancer whose case |
| consequences of suffering such an illness continue | | | | was rejected because she hadn't listed treatment |
| to be substantial and life-changing. | | | | for depression on the original proposal form. |
| Critical illness insurance policies are designed to | | | | The rejection rates are shown as follows: |
| help you cope with the changes which will be | | | | Company % of rejected claims |
| necessary should you be diagnosed with a | | | | Scottish Equitable Project 28% |
| "qualifying medical condition". Most policies will pay | | | | Norwich Union 26% |
| out following a diagnosis of heart disease, cancer, | | | | Friends Provident 25% |
| stroke, renal failure, paralysis, major organ | | | | Legal and General 22% |
| transplant and coronary artery bypass surgery as | | | | Bupa 21.5% |
| well as a range of other conditions. There is | | | | Skandia 21% |
| normally a one-off tax free payment which is | | | | Prudential 20% |
| intended to assist you with costs, typically the | | | | Standard Life 20% |
| need to adapt your home or car or maybe | | | | Scottish Widows 18% |
| re-train for a different occupation. It's not only the | | | | Scottish Provident 11% |
| bread-winner that can benefit from this type of | | | | Scottish Equitable Guardian 10% |
| cover and you should take account of child care | | | | Average 23.5% |
| and housekeeping costs which would be involved | | | | Despite the insurers claim that these rejections |
| should Mum be out of action. | | | | are perfectly legal, the Law Commission appears |
| Unfortunately, at a time when most people are | | | | to think differently. There has been a consultation |
| suffering from the shock of learning that they | | | | document published recently and the Commission |
| have been diagnosed with a critical illness, they | | | | makes the statement "It is possible for an |
| and their families may learn some additional | | | | applicant to act reasonably and honestly and yet |
| disturbing news. The insurance industries latest | | | | still fail to meet the duty of disclosure." The |
| figures show that, on average, around a quarter | | | | conclusions of these consultations will be reported |
| of all claims are rejected! | | | | on as soon as they are available. |
| As soon as a claim is made, the insurance | | | | It is therefore extremely important that when |
| company will request a huge amount of | | | | applying for this very valuable form of insurance, |
| information from your doctor. It's quite likely that | | | | you disclose all previous illnesses. It's probable that |
| much of this information is not relevant to the | | | | if you have to claim, then your medical records |
| illness for which the claim relates. The insurer is | | | | will be thoroughly examined and if the insurers |
| using this information to ascertain whether or not | | | | consider you omitted medical information, they |
| the insured has been completely truthful on the | | | | may "throw out" the request. |
| original insurance application form. | | | | Compare companies for the best rates. Read the |
| The reason for this is what the insurers call | | | | small print. Spend some considerable time in listing |
| non-disclosure and if any medical information has | | | | medical conditions. Relax - it may never happen. |
| been omitted, they can use this as grounds for | | | | |