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