When Critical Illness Cover Doesn’t Pay Out

Having Life Critical Illness Cover is all well and good but you don’t have to look too far on the internet to find examples of cases where the life insurance company didn’t pay out.

So why would a life insurance company not pay out?  There are two main reasons for this.  The main reason is non-disclosure.  Non-disclosure is where the applicant completed their critical illness cover application but failed to inform the life assurance company of past medical history.  If you were a life assurance company and someone said that you owed them thousands of pounds you would check into that claim!  The simple rule here is that if Critical Illness Cover makes enough sense to you to fill out an application form and apply, don’t give the life assurance company a reason not to pay out because you are worried about your past medical history.  It’s because of your past medical history that makes Critical Illness Cover is good idea.  Be honest, tell the life assurance company everything!

The second reason why Critical Illness Cover doesn’t pay out is because the illness diagnosed doesn’t match the specified illness in the plan.  Most reputable Critical Illness providers will use the ABI’s standard definitions list as well as have their own definitions which can be requested prior to application.  Read them and make sure you are happy with the definitions and what they mean to you.

If you follow these two simple rules then the chances of a life assurance company not paying your claim are limited.  Millions of pounds each year are paid by critical illness providers to successful  claimants so don’t let the small number of negative internet comments put you off.