Why do you need to consider a new Critical Illness policy if you already have one?

Because older policies were often limited in the illnesses they covered; your own circumstances may have changed; you may now need to increase the sum insured.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

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Is there a waiting period to receive payment on a Critical Illness claim?
All Critical Illness policies require you to survive a specified number of days following diagnosis in order to have a valid claim. The typical survival period is 28 days but some insurance companies have reduced this to 14 days.
Will Critical Illness policies permit the use of alternative medicines?
After you have been diagnosed with a qualifying Critical Illness and the claim has been paid you can spend your money however you like. So if you want to spend some of your money on alternative medicines then that’s entirely your choice.
Will a claim for critical illness affect any State Benefits?
No, it should not affect your claim for State Benefits.
What happens if your condition improves after making a claim on your Critical Illness policy?
Once the insurance company has paid you the money is yours to spend how you like. The policy is terminated and your insurer has no interest on how you live your life or indeed whether your condition improves or is healed.
What happens if your condition deteriorates after making a claim on your Critical Illness policy?
As far as your insurance is concerned, it makes no difference. Your policy has already paid out and your ex- insurer has no further interest in your health.
Policy conditions have improved:
Developments of new medical treatments are gathering pace every year and new illnesses are being recognised by insurance companies as being ‘critical’. In the early days Critical Illness policies tended to cover only the main illnesses such as cancer, heart attack and stroke. We suggest that you check your existing policy. Today most companies insure well over 20 different conditions. You can click below for further information.

Changes in your own personal circumstances:
If you already have critical illness cover you may have decided upon the level of cover based on the mortgage you had at that time. Have you re-mortgaged since? Have you changed from employed to self-employed? Have you moved from self-employed to being a director of your own business? Are you earning more than you were when you set the level of cover? Do you have a family now that would need to be provided for? Do you simply need more cover?

"An person is much more likely to have a critical illness within the period of the loan than they are to die, and the additional cost is minimal especially bearing in mind the risk. It provides a lump sum at a difficult time when many people wish to re-assess their lives."
(Source: Ronnie Martin, Protection Director for Legal & General)

Change in economic conditions:
Whilst inflation is currently relatively low, it has been high over the medium term. It could be that your current sum insured will not be enough to achieve the peace of mind you desire today.

If you insured for £50,000 in January 1979 you would need £130,000 in October 2003 to maintain a similar standard of living. Looking at it the other way your original £50,000 would now be worth just £19,000.
(Source: UK Retail Price Index)

Frequently Asked Questions related to the above topic.
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