Recently, there has been a case in the press where a man who had a Critical Illness was involved in a road collision and as a result, he lost one of his legs.
However, the insurer refused to pay due to the policy conditions which stated that the policyholder has to lose both legs to receive a payout. Although this seems harsh, this happened because when Critical Illness policies were first designed, back in the 1990’s the actuaries (the people who would work out the risk/cost/etc) decided that this was the best option.
Life Insurance St Neots – Bright Advice
Critical Illness policies have evolved ever since they first started, but in recent years they have evolved even quicker with one of the main reasons because of Vitality Life. The company started as Pru-Product and has changed the way the Critical Illness market works by introducing Serious Illness Cover which pays out a percentage of a claim, rather than waiting for 100%. Going back to the early case of the man with one leg, it would mean that he wouldn’t need to contemplate chopping his other leg off in order to get a payout!
Many companies have now upgraded their cover to include part payments and severity payments, which is good news. Unfortunately, there is some bad news. Any existing policies aren’t upgraded, therefore the guy with who lost his leg didn’t get a payout because he hadn’t upgraded his cover. Of course, if you are going to upgrade your cover it’s going to cost you a small amount extra each month. If you’re insured for, say, £100,000 wouldn’t a few pounds extra a month be worth it?
The moral of the story is that if you are currently insured and your insurance is over 4 years old it’s worth checking out. Could you possibly get better cover for just a little bit extra each month? What if your health has changed? You may be affected by a history of ill health in the family. If you’re not sure, ask a professional. I’m sure that you are always upgrading your phones, getting the latest TV with brand new technology so why aren’t you keeping up with the changes in insurance?
If you don’t currently have Critical Illness Insurance, ask yourself why not.
I’ll get on sick pay next time because a lot of people seem to think that they will be OK should they get ill and money won’t be an issue. But this my not be the case.
In other news, more lenders are going up to 95% mortgages. Before the Government had to entice them to lend at 95% but now there are more deals available which is good news for first-time buyers. However, the bad news s that if you are looking to buy a property within the Cambridge City boundary, you will need to have an income of at least £83,500. Maybe moving into the sticks isn’t so bad after all, especially as fuel prices are dropping.
Finally, lenders will now look at self-employed applicants who have just one year’s worth of accounts. Plus, if you have had issues with credit in the past, some lenders are looking at this more sympathetically. So don’t despair. There may be an answer for you.
Bright Advice – Life Insurance St Neots
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