Summary
The necessity for precision and honesty when writing critical illness insurance plans. Read this article to understand.

There is nothing more worrying in life than to be diagnosed with a chronic or critical condition. Matters are made a thousand times worse when your insurance company notify you that they won’t pay up on your critical illness insurance or private medical insurance for the HIV or cancer you are afflicited with.

You are told to look at sub-clause six of paragraph 324 of the small print, which informs you that you have been diagnosed with the  wrong form of cancer. Only tumours below the knee are covered and only the first five days of your treatment will be paid for, and then it is up to you to find the finance.

This scenario may sound ridiculous, although brokers and life assurance companies are regulated, this type of practice continues togo on. It has been a time-consuming process to tidy up the industry and to make sure that consumers get a fair deal.

A little while ago Cancer Backup, a well known charity, emphasizes this predicament by coordinating a wide ranging mystery shopping surveys, which brought to light some worrying facts about the private medical insurance industry. It established that of nearly all the leading insurance companies only BUPA provided cover for cancer patients all through the duration of their illness. Only the first part of the treatment is covered by most of the health insurance companies. Care or treatment over a longperiod of time, such as chemotherapy or hormone replacement is not normally included. Even though insurers and brokers want to finance long term cover for insurance holders with severe illnesses, they won’t always point out to potential clients, at the time of signing up what they are covered for.

Although both Macmillan Cancer Support and Cancer Backup have been in talks with comparable establishments within the industry to raise the standard of sales practices and make the phrasing of policy documents much clearer, since the report was published two years ago, progress has been slow.

Private medical insurance and critical illness cover  is normally taken out by clients who are relatively hale and hearty. Getting cancer is the last thing to cross their mind. That is why it is  so important to spell out an insurance policy’s exclusions before they sign.

A statement of best practice for insurance companies writing and selling medical policies has been revised recently by the  ABI, which is a much needed step in the proper direction.

The trade body has now recommended that insurance companies and providers selling these kinds of insurance should set up typical case studies, which explain the circumstances when a policy will or will not be paid. Sadly insurers have no obligation to stick to this code, which is voluntary.

Even though the  Association of British Insurers initiative is to be appreciated, the best way of clarifying an insurance policy is by asking the salesman to clearly explain the small print.

In addition, industry jargon is in spite of everything even now being utilized by insurance companies to bewilder the consumer. For example it is wrong to categorize cancer as an acute or chronic illness, disputes Cancer Backup. However insurance companies are resolute that it should go in the acute category. Consumers only hear about this when their claim is rejected.

Even though the  Association of British Insurers have got their responsibilities right, the insurers can only be made to improve their standards by the regulator. Much more detailed training of call centre staff, who sell the majority of the insurance policies, is also long overdue.

More rigorous marketing procedures are essential with terminology being removed. In the end it it is the duty of the insurersinsurance companies to make sure that their customers understand the small print of their insurance cover before they sign the document.

If you are interested in finding out more about critical illness cover of life insurance cover, then it’s best to go online. These types of insurance are essential when you are considering quotes for mortgage cover.