Looking At Critical Illness Claims Statistics To Determine The Insurer Of Your Choice Can Be Unwise
People have been made aware by experts in the insurance industry not to take out critical illness insurance with a company based upon its proportion of critical illness claims it pays out. The figure might give a wrong impression. The impact can affect you directly if the critical illness insurance is not as effective. John Greenwood affirmed that some companies tend to show how much critical illness claims they may have paid in contrast to others. But everything may boil down to how experienced a company is in the insurance market.
Companies have recently adopted a new tactic. They have started to publish the percentage of critical illness claims they have successfully paid as well as the proportion of rejected claims. This may have become a sort of a league table where the company with the lowest ratio of critical illness claims paid stands at the bottom. These companies may even be subjected to criticism for not appearing among the higher rated companies. Recent figures may reveal that Scottish Equitable Protect may have refused 28 percent of critical illness claims. Adding to this, Friends Provident may have also turned down 25 percent of claims. On the other hand, Scottish Provident may have refused only around 13.7 percent of critical illness claims. So, you as a customer would have the tendency to choose Scottish Provident over Scottish Equitable or Friends Provident. But looking only at the statistics may turn out to be unwise.
Moreover, a new report from financial research company Defaqto affirms that the reputation of critical illness cover in the market may have become bad. People may be refusing to buy new policies hence exposed to financial dilemmas if a critical illness strikes. According to Nick Telfer, head of life and protection at Defaqto,
unhelpful publicity of major cases that have been declined for technical reasons may have weakened confidence in critical illness among people. Critical illness insurance remains a vital factor for family protection. But people may overlook this type of cover therefore approaching themselves to possible problems in case of occurrence of critical illness.
As per Kevin Carr, protection specialist IFA research, people who want to buy critical illness cover must not look at the claims statistics to make their choice. He says that critical illness claims may be more likely to be rejected in the first couple of years of a policy. He also points out that critical illness claims may be more likely to be turned down if someone ill takes out a policy but fails to mention the fact. Such a fact could be discovered within the first five years after taking out the critical illness policy. Moreover, he states that companies which may have started business for only a couple of years may reject such types of critical illness claims. That is if someone knows he will be falling ill but takes out critical illness insurance during the process.
Critical illness insurance can be a very effective insurance policy. But as seen, unwanted results and competition matters, so called the league, may have now given critical illness insurance another image. An image that many people do not want to see. But, is there still room for improvement?
Critical illness insurance protects yourself or your family. For more information about critical illness insurance please visit www.unbeatablelifeandcriticalinsurance.co.uk.
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