There is no doubt that Critical Illness Insurance is changing. Over the past few years the majority of insurers have streamlined their policies so that they all follow and adhere to the ABI (Association of British Insurers) definitions. This comprehensive list clearly defines what each illness means and what diagnosis is required to successfully make a claim.
Because of this clarity, claims settlement history statistics show that more and more claims are now being succesfully paid out. Legal & General recently revealed that the company paid out on 93% of claims which was an increase of 5% on the previous year. Statistics like these mean that more people will have faith in this type of insurance and the companies offering it. Could there be further changes to make this type of insurance cover even more popular?
One way critical illness cover could go would be in offering a menu driven approach. Most insurance companies offer at least 22 standard illness definitions yet they all say that heart-attack, stroke and cancer catch the vast majority of claims. Most people who decline cover do so due to cost. Could it be then , that life assurance companies could soon offer the kind of cover that a customer might actually want? The prospective customer would simply choose the illnesses they do want to be insured for rather than paying for the illnesses they are not concerned about. Car Insurance does this now when you first of all choose whether you want third party fire and theft or fully comprehensive insurance. You can then choose to add benefits such as breakdown cover, windscreen replacement, a courtesy car and other named drivers etc.
The menu approach could mean that critical illness cover gets further exposure and is seen as an insurance that is accessible to anyone rather than just those who can afford it.
Martin Cavana writes for Life and Critical Illness Cover and is active in promoting Critical Illness Cover to as large an audience as possible. Statistics prove that Critical Illness Cover should be at the forefront of peoples insurance needs but lack of understanding stops this from happening. Our company offers free Critical Illness insurance advice and free quotations.
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