Press Release Summary = Many people are literally "getting mugged" by providers when it comes to buying critical illness cover (CIC) says David Thomson, Chief Executive from insurance specialist website bestdealinsurance.co.uk
Press Release Body = Many people are literally "getting mugged" by providers when it comes to buying critical illness cover (CIC) says David Thomson, Chief Executive from insurance specialist website bestdealinsurance.co.uk.
He says that consumers looking for critical illness insurance are being taken advantage of by unscrupulous providers who are selling over priced cover that often offers poor value, and in some cases, no cover at all.
"Some policyholders are literally paying out huge premiums for what amounts to little more than blank pieces of paper" he adds. The reason, explains David, is all in the small print.
He says that many insurers use non-disclosure of a past or existing medical condition - however tenuous the link to a current claim - as a way of keeping their costs low. David also feels that the serious illnesses the insurance will and won't actually pay out on are hidden away in the small print, leaving policyholders believing they have adequate protection when in fact they are financially vulnerable.
Critical illness insurance provides a financial safety net in the form of a tax free lump sum should the policyholder be diagnosed with a serious illness. Fall ill and without it, you could literally lose your home. However, around 25% of all critical illness claims are rejected, mainly because of a supposed lack of disclosure.
However, David feels that this is just an excuse: "Many critical illness insurers will do anything they can to get out of paying a claim" he fumes.
Scandalous examples of critical illness cover claims being declined by insurers include a woman whose breast cancer claim was refused (because she had not disclosed previous back problems) and a man diagnosed with lung cancer (his claim was declined on the basis that he drank more alcohol than stated on his application).
And it appears that complaints against CIC providers are on the rise. Figures from the Financial Ombudsman show that they received 799 complaints in relation to declined critical illness insurance claims for the period April 2005-March 2006, an 11.43% increase on the previous year.
The industry watchdog the Financial Services Authority (FSA) last year undertook a mystery shopping exercise in relation to CIC which highlighted how companies failed to draw the customer's attention to the importance of disclosing their full medical history. These firms did not ensure that customers fully understood what they needed to disclose and the risks associated with failing to do so.
David says: "Anyone taking out critical illness cover should not only fully disclose any previous or current medical conditions - how ever irrelevant they may seem - but they also need to ensure that they read the small print carefully and fully understand what the cover offers.
"They should at all costs avoid buying their critical illness cover from their mortgage lender or bank. By using an independent broker they will get unbiased advice and help through the maze of products available so that they can find the right cover for their circumstances".
Ends
Web Site = http://www.bestdealinsurance.co.uk
Contact Details = Contact: David Thomson, Chief Executive, bestdealinsurance.co.uk on: 01933 442211, mobile: 07968 797030, email: david@bestdealinsurance.co.uk
2022
