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Finance
Finance
Critical Claims Statistics for Critical Illness Cover
Any form of insurance can be seen as a risk.
You pay a monthly or annual premium to an insurance company
for a set amount of cover, effectively passing the risk to
the insurance company. As long as you pay the premiums
you'll continue to be covered, for whatever purpose.
When it comes to protecting YOURSELF in the form of life
assurance, critical illness cover, permanent health
insurance or private health insurance you really do need to
take the time to do your research (or pay someone to do it
for you) as this form of cover is not the type that you'll
normally be shopping around for on an annual basis.
For example, once you've applied for and been accepted for
income protection cover it's unlikely that you'll change
the plan or company that you're insured with in the future
as the cover is based on your age and health at the time
you apply.
One of the factors that you may not have included in your
research is the actual claims history of the insurance
company that you choose. After all, if you put in a claim
you'll want to know what your chances of a payout are going
to be.
During the last 2-3 years more insurance companies have
been publishing their claims statistics. This is crucial
information as it gives you the opportunity to understand
which conditions are being claimed for the most (so you can
ensure that your plan covers these conditions and the
wording of these conditions is competitive when compared to
all other providers).
Fortunately, the Association of British Insurers (ABI)
publishes a set of definitions for 20 conditions (see
below) and registered insurers who cover any of these
conditions must comply with, or surpass, the ABI definition.
The 20 conditions:
-Cancer
-Heart attack
-Major organ transplant
-Stroke
-Coronary artery by-pass
-Kidney failure
-Multiple sclerosis
-Aorta graft surgery
-Blindness
-Deafness
-Loss of limbs
-Benign brain tumour
-Coma
-Heart valve replacement or repair
-Loss of speech
-Motor neurone disease
-Paralysis/paraplegia
-Parkinson's disease
-Terminal illness
-Third degree burns
Many companies also cover additional conditions, including
bacterial meningitis and pre-senile dementia.
Skandia, one of the leading providers in the critical
illness market, have recently released their claims
statistics (covers claims up to 1 February 2007).
They have:
-Paid 1920 claims totalling over £182m
-The average age of claimants is 46
-On average a policy is in force for 4.7 years prior to a
claim
The most common claims are for:
-Cancer, 59%
-Heart attack, 15%
-Heart surgery, 8%
-Stroke, 7%
The most common forms of cancer claimed for are:
-Breast cancer, £23m
-Lower intestine, £11m
-Malignant melanoma, £9m
-Prostate, £7m
They have paid 88% of claims, with the remainder being
declined for the claim either not meeting the definition
(10%) or where the applicant did not disclose all the
information required at the time of application (2%).
The Financial Tips Bottom Line
If you currently have ANY form of personal protection
policy, it makes sense to review your plan(s) to ensure the
cover you have is competitive and suitable for your
circumstances. If you don't yet have cover make sure you do
thorough research before you buy a policy.
----------------------------------------------------
Ray Prince is an Independent Financial Planner with
Rutherford Wilkinson plc, and helps UK Resident Doctors and
Dentists get the best deals on mortgages, protection and
investments, as well as helping them achieve their
financial objectives. Just visit
http://www.medicaldentalfs.com to get your free retirement
planning guide. Rutherford Wilkinson plc is authorised and
regulated by the Financial Services Authority.
Any form of insurance can be seen as a risk.
You pay a monthly or annual premium to an insurance company
for a set amount of cover, effectively passing the risk to
the insurance company. As long as you pay the premiums
you'll continue to be covered, for whatever purpose.
When it comes to protecting YOURSELF in the form of life
assurance, critical illness cover, permanent health
insurance or private health insurance you really do need to
take the time to do your research (or pay someone to do it
for you) as this form of cover is not the type that you'll
normally be shopping around for on an annual basis.
For example, once you've applied for and been accepted for
income protection cover it's unlikely that you'll change
the plan or company that you're insured with in the future
as the cover is based on your age and health at the time
you apply.
One of the factors that you may not have included in your
research is the actual claims history of the insurance
company that you choose. After all, if you put in a claim
you'll want to know what your chances of a payout are going
to be.
During the last 2-3 years more insurance companies have
been publishing their claims statistics. This is crucial
information as it gives you the opportunity to understand
which conditions are being claimed for the most (so you can
ensure that your plan covers these conditions and the
wording of these conditions is competitive when compared to
all other providers).
Fortunately, the Association of British Insurers (ABI)
publishes a set of definitions for 20 conditions (see
below) and registered insurers who cover any of these
conditions must comply with, or surpass, the ABI definition.
The 20 conditions:
-Cancer
-Heart attack
-Major organ transplant
-Stroke
-Coronary artery by-pass
-Kidney failure
-Multiple sclerosis
-Aorta graft surgery
-Blindness
-Deafness
-Loss of limbs
-Benign brain tumour
-Coma
-Heart valve replacement or repair
-Loss of speech
-Motor neurone disease
-Paralysis/paraplegia
-Parkinson's disease
-Terminal illness
-Third degree burns
Many companies also cover additional conditions, including
bacterial meningitis and pre-senile dementia.
Skandia, one of the leading providers in the critical
illness market, have recently released their claims
statistics (covers claims up to 1 February 2007).
They have:
-Paid 1920 claims totalling over £182m
-The average age of claimants is 46
-On average a policy is in force for 4.7 years prior to a
claim
The most common claims are for:
-Cancer, 59%
-Heart attack, 15%
-Heart surgery, 8%
-Stroke, 7%
The most common forms of cancer claimed for are:
-Breast cancer, £23m
-Lower intestine, £11m
-Malignant melanoma, £9m
-Prostate, £7m
They have paid 88% of claims, with the remainder being
declined for the claim either not meeting the definition
(10%) or where the applicant did not disclose all the
information required at the time of application (2%).
The Financial Tips Bottom Line
If you currently have ANY form of personal protection
policy, it makes sense to review your plan(s) to ensure the
cover you have is competitive and suitable for your
circumstances. If you don't yet have cover make sure you do
thorough research before you buy a policy.
----------------------------------------------------
Ray Prince is an Independent Financial Planner with
Rutherford Wilkinson plc, and helps UK Resident Doctors and
Dentists get the best deals on mortgages, protection and
investments, as well as helping them achieve their
financial objectives. Just visit
http://www.medicaldentalfs.com to get your free retirement
planning guide. Rutherford Wilkinson plc is authorised and
regulated by the Financial Services Authority.