Aviva is planning premium discounts on its critical illness insurance for those who have come through cancer, and would therefore not have cancer cover in their policy.
“Aviva are planning to introducing price reductions for cancer exclusions as it is clearly the right thing to do for the customer. We will be making an announcement in the near future,” said Michael Whyte, chief underwriter at Aviva.
The reduced premiums acknowledge the fact that cancer, the most common claim under critical illness insurance, is excluded from the cover offered to customers with either a personal or family history of the disease.
Cancer accounted for 64% of all critical illness claims made to Aviva during the first half of 2009. In the same period, 9% of claims were declined as the condition claimed for was not covered by the claimant’s policy.
Legal & General, Zurich, LV= and Axa have already introduced favourable premiums on their critical illness insurances, to recognise exclusions under their cover. L&G claims to offer reductions of up to 18% for those with a personal or family history of cancer.
What is critical illness insurance?
Critical illness insurance provides a single payout if you are rendered unable to work due to a defined list of diseases and conditions. In addition to cancer, the main illnesses normally covered would include heart attack, stroke, kidney failure, major transplant surgery, heart bypass surgery, and multiple sclerosis.
With critical illness insurance, as with all insurances, the small print is critical and is best explained by a qualified financial adviser.
First, the common conditions of back pain and stress are usually not covered. Second, stroke and many other ailments are not covered in many critical illness policies. Heart attacks in particular must be of a certain level of severity, and leave permanent symptoms. No claim will be entertained if it results from alcohol or drug abuse, criminal acts, or injuries deemed to be self-inflicted.
Another factor to consider is that, due to advances in medicine, certain medical procedures that would previously have been regarded as critical are now excluded from some critical illness policies.
