4 Myths About Critical Illness Cover
Critical Illness insurances cover specific illnesses listed within a policy. If you get diagnosed with one of these illnesses, a critical policy will pay out a tax-free benefit to you. So let’s dispel some of these myths…
❌ Myth 1 - “It won’t happen to me”
Most people believe that a critical illness will never happen to them, yet most of us know of someone that has been affected. A comprehensive policy should cover at least 37 major conditions, with some policies covering over 70 conditions. This would be things like cancer, heart attack, heart bypass, kidney failure, major organ transplant, multiple sclerosis and stroke.
❌ Myth 2 - “I’m too young”
Critical illness can affect anyone, any time. Many insurers cover infants from birth, and more people are claiming on children’s critical illness cover. The average age to claim is 48, with the youngest adult age 22. Sadly, for children, the average age of a claim was 8 and the youngest was just 4 days old.*
❌ Myth 3 - “It’s too expensive”
Generally, the younger and fitter you are, the cheaper the cover.
The cost of cover changes due to various factors (age, health, family medical history, if you smoke etc). A lump sum could help you with taking longer off work and adaptations to your home.
❌ Myth 4 - “Insurance companies never pay out”
Most providers are paying between 90% and 93% of critical illness claims. Those not paid are mainly down to inaccurate health details being given on application, meaning the insurer may not have given cover in the first place.**
To find out more about the conditions covered, what level of protection you need and what this may cost, get in touch.
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Willow Tree Financial Services are a Financial Adviser based in Polegate, East Sussex, UK. We specialise in Financial Planning, Mortgages, Investments & Pension Planning, Protection & Insurance Wills, Trusts & Estate Planning.
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Sources:
* https://www.legalandgeneral.com/landg-assets/adviser/protection/protection-new/adviser-toolkit/our-claims/2023-claims-statistics-infographic.pdf
**https://www.royallondon.com/about-us/media/media-centre/press-releases/press-releases-2024/may/royal-london-paid-a-record-731-million-in-protection-claims-in-2023
**https://connect.avivab2b.co.uk/adviser/articles/news/protection/Our-2023-individual-protection-claims-results
**https://guardian1821.co.uk/about-us/news/guardian-paid-over-15-million-of-claims-in-2023
