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Critical illness Insurers under fire. Page 2

These first court cases illustrate the problems that can arise

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when policy documents imprecisely defines an illness or when the technical diagnosis of an illness leaves room for the medical experts to disagree. Both issues are entirely outside the policyholders control and we can well understand their anguish at a most difficult time for them. The long-term solution must lie in the way the insurance company defines and explains the scope of the cover being afforded under the policy.

In the other court case, Mr Welch's position must stand as a clear reminder to everyone that insurance applications must always be 100% truthful and completed in good faith. We know that this will always leave some room for dispute (and Mr Welch's case may be one of them), but if applicants fail accurately complete forms they are taking the risk of having a subsequent claim rejected.

The situation now is that the press articles will, rightly or wrongly, reinforce the public's impression that insurers cannot be trusted - especially with regard to critical illness insurance. It's a fact that around 20-25% of critical illness claims are rejected but the rejection rate does vary a little between insurers.

This is a crying shame as 1 in 5 men and 1 in 6 women will be diagnosed with a critical illness before their normal retirement age and as such, this type of life insurance can greatly help the finances of those unfortunate to be diagnosed (source Munich Re).

Did you Know?
Under the 1971 Animals Act, dog owners are legally responsible for their animals. So some pet insurance policies also include third party liability insurance for dogs. This means, for example, that if your dog causes a road accident which damages a vehicle, the insurer will pay for the damage.

Did you know?
survey conducted by Experian, the largest UK credit reference agency, found that 54% of applicants for personal loans were refused. Of those accepted for a loan, 43% were offered a higher rate than the rate they saw advertised. That's why, if you're searching for a personal loan, it's a good idea to apply through a loan broker who will know the lenders who'll best suit your circumstances.

Did you Know?
Cheap secured loans are widely advertised on the Internet but of those applicants who are accepted, 43% are offered a higher rate than the rate they saw advertised (source: Experian). That's why, if you're looking for a cheap secured loan, it's a good idea to apply through a loan Broker. The Broker will know exactly who will accept your credit history and find you the cheapest rates of interest.

Did you know?
Secured loans always attract the lowest interest rates. That's because the lender is protecting his risk by taking a legal charge against your property. Then, if there is a default, the lender can call in the loan and, in the final event, sell the property in order to recover the money you owe.