Claiming on a Critical Illness Policy
Article published on 18th July 2008
Usually you will find that the pay out on a critical illness insurance (CII) policy is tax free. So what you get is what you get without any hidden slap in the face. Although the maximum that you are likely to get through a claim is variable depending on the policy and the company you are insured with, payouts tend to vary between 100,000 and 250,000 pounds sterling.
You will usually be paid around 28 days after your critical illness or condition has been positively diagnosed, although in the case of a permanent disability it can take up to 6 months, and even a year, before payments begin. Check with your policy for details.
Remember that the longer you defer before making your claim, the cheaper your premiums will tend to be.
Critical Illness Insurance policies are different very different from permanent health insurance, which pays out a regular income if you have contracted an illness that lasts indefinitely or if you have an injury that won't go away. For instance, chronic and severe back pain, unless caused by certain cancers, organ failure or injury, may not be covered by a CII policy, either in the short term or long term (it all depends on the policy) That said, such a condition may well be covered by a permanent disability policy.
Again though, a minor stroke may well qualify for a critical illness policy payout where it would not necessarily be eligible for a benefit from another income protection policy...
To speak to a Critical Illness Specialist about a Critical Illness Policy, either call us on 01723 516 600 or request a Critical Illness Insurance Quotation using the link below and instantly compare the leading quotes online.
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