How to get the best Critical Illness Cover?
All Insurance Companies use the guidelines set out by the Association of British Insurers (ABI) as a basis of their Critical illness Contracts. However many of the Insurance Providers have exceeded the guidelines by covering more medical conditions and offering wider definitions.
Each Insurance Company has their own variation of the contract and it can become a minefield when deciding which company offers the most comprehensive policy. It’s not simply about the number of conditions covered – it’s also about the small print!
We were approached by Mr T, a 45 year old non-smoker as he required a life or earlier critical illness policy to cover his new mortgage of £190,000 over a term of 19 years.
Mr T told us that he had an available budget of around £80 a month to pay for the policy.
Initially, we looked at the various quotes, on a decreasing term, which were priced between £76.43 and £99.64 a month.
Part of our research process uses an online tool called CI Expert. This compares the policies based on the statistical likelihood of meeting a claim when taking into account the applicant’s age, gender, smoking status and whether they have children (as the policyholder’s children are also covered by most policies).
The policy with the lowest premium of £76.43 scored quite poorly when comparing the medical conditions covered by other companies. The company offering the most comprehensive cover were quoting a premium of £85.99 a month.
We provided the client with a free report setting out the additional conditions covered by the more comprehensive policy compared to the cheapest policy.
Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.
We found 58 occasions where the cheaper policy did not cover conditions offered by the more comprehensive policy, or the policy wording was not as favourable.
Once Mr T had studied the report, he was more than happy to stretch his budget to the policy costing £85.99 a month knowing that he and his children are covered by the most comprehensive policy on the market today.
It’s worth bearing in mind, everyone’s situation is different. If you have any questions, or would like some (free) advice, the best thing to do is call one of our friendly advisers. They would be happy to explain your options. Freephone: 0800 644 4468
- Read Jon’s moving story about his testicular cancer diagnosis.
- Learn more about critical illness cover.
- Did you know over 92% of critical illness claims were paid in 2016?
Not every Insurer offers the same level of cover. Our expert advisers will help to explain the difference, so you can make an informed choice!
Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success. All applications are subject to underwriting.
Client ref: 123210120