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Will a claim for critical illness affect any State Benefits?
No, it should not affect your claim for State Benefits.
Hot Topics
- Should you have a “Guaranteed” or a “Reviewable” policy?
- When a policy is first started Guaranteed policies have higher premiums than Reviewable policies - but in the longer period Reviewable policies generally work out more expensive.
- Are Critical Illnesses In Pregnancy Covered?
- Pregnancy does not affect any claim under critical illness insurance. It would be hard to make a case that pregnancy was a ‘self-inflicted injury’!
- 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.
- What is the difference between Critical Illness cover and Terminal Illness cover?
- Critical Illness Insurance is much more comprehensive than Terminal Illness cover. 1 in 5 men and 1 in 6 women suffer a critical illness before their usual retirement age.
- Can you extend or increase your Critical Illness cover at a later date?
- If you have a policy with a renewable option then yes, you can increase, or sometimes extend, your cover. If you do not have a renewable option then you cannot change your cover. These days only a few insurance companies offer policies with a renewable option.
The allowances concerned are Statutory Sick Pay, Incapacity Benefit, Disability Living Allowance or Severe Disablement Allowance. (From time to time the Government changes these benefits so please double check this information with your local Benefits Office.)
Currently, none of these benefits are means tested. Therefore, they will not be affected by your receipt of a lump sum from your insurer.
If you have a partner who is a carer (or may become a carer as a result of your illness) they may also be entitled to a Carers allowance. At the moment this allowance is only paid if their income is below £77 per week (2003/04)
Remember, all lump sum payouts from a critical Illness policy are tax-free.
Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -
- How do you go about making a claim under your policy?
- Can a claim still be made if the policy is lost?
- Can the critical illness policy be continued after a claim ?
- What decisions will you have to make before you can get a quotation?
- Under what situations would a claim be refused?
- What other benefits can be added to a critical illness policy ?
- Can the critical illness policy be continued after a claim ?
- What is “Total and Permanent Disability”?
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