Why it is important and how do you choose the right provider?

Critical Illness forms a very important part of any protection planning solution but I find many clients simply do not have this in place or are unaware of the conditions their policy covers them for. The critical illness market has evolved over the last few years and definitions of illnesses covered have been made much clearer whilst the conditions covered have improved generally.
However, before you rush to engage it is extremely important that you properly review any existing cover you have in place. Whilst generally improved, modern policies may now exclude certain medical conditions previously covered. Nevertheless, as our collective health continues to improve along with preventative medicine, it may be possible to reduce existing monthly premium despite having aged a few years. One big factor is smoking; if you have quit since taking out a policy then it will be sensible to re-apply.
But the bigger issue is the relative lack of awareness of such policies. Critical illness cover provides you with protection in the event of the diagnosis of a serious illness. Regardless of the eventual outcome, the sum insured is paid out on diagnosis. The three most common conditions paid out for are heart attack, cancers and stroke. All three conditions are increasingly survivable but can cause huge distress and disruption during what is often a prolonged recovery period. A critical illness claim could clear the burden of your mortgage, or pay for the adaptation of your home for wheelchair access. In the worst case scenario, it could pay for innovative treatment not yet available on the NHS.
We increasingly recommend business take out such policies on their key employees as this is far more common a scenario than death. Yes, the cost of cover is always an issue but this can be minimised by having an either or policy which pays out on diagnosis or death, but not both.
There is a good choice of provider all with their own specific rules and limits. Rather like Private Medical Insurance the range of policy conditions can be confusing. The key is to seek advice early, as the younger you apply for this cover the cheaper it will be and the premium can then be guaranteed for the term of the policy. Any application will be assessed for pre-existing health conditions which can be a complicated process. I work closely with the providers which means I can obtain decisions in principle for our clients thereby helping them to understand the likely outcomes.
The Association of British Insurers (ABI) sets a standard definition of each medical condition in their statement of best practice for Critical Illness Cover. Our plans follow the ABI and in many instances exceed their standard. We can also arrange cover for additional conditions not included in their guidelines.
As this is a specialist area of advice it is important to seek out this information from an appropriate financial adviser. Richmond House Wealth Management has this specialist knowledge and are always available to answer your questions.

John Merrifield.
Dip PFS, Cert (CII) MP.