| There's a new critical illness policy on the | | | | policies would only pay out when total |
| market which attempts to go some way with | | | | blindness occurs. In all, 140 severe |
| regard to sorting out the perplexity | | | | conditions are covered. |
| regarding exactly what is, and is not, | | | | |
| covered when it comes to claiming on the | | | | A spokesman for one of the specialist |
| policy. | | | | financial advisers welcomed the range of the |
| | | | policy, but voiced some concern regarding the |
| Traditional critical illness policies tend | | | | implementation of these severity-based |
| to cover up to 35 listed medical conditions. | | | | payments, saying that it would be open to |
| Policyholders could become seriously ill with | | | | argument as to what level of severity some |
| a condition that doesn't fall into the scope | | | | illnesses would be graded as. It was felt |
| of the policy and find that their illness is | | | | that it would not be advisable to enter into |
| not covered, whilst others may be diagnosed | | | | this type of policy unless you had a very |
| with a listed illness with a lower "grading" | | | | clear understanding of exactly how it would |
| which is relatively easily treated, for which | | | | work. We quote "It will be up to the consumer |
| they get a full payout. | | | | to decide whether a guarantee of getting a |
| | | | smaller payment is better than possibly |
| Because of this inequality, the Financial | | | | getting nothing." |
| Services Authority is uneasy with regard to | | | | |
| insurers failing to fully understand that | | | | The cost of this new policy is approximately |
| cover is restricted to certain specific | | | | twice as much as conventional critical |
| illnesses. | | | | illness cover. |
| | | | |
| This new product is marketed by the | | | | If your main concern regarding insurance |
| Prudential, under the name of the Flexible | | | | cover should you become critically ill would |
| Protection Plan, and is unusual in that it | | | | be the financial outcome, it might be better |
| claims to cover an amazing 140 medical | | | | to consider life insurance. Particularly, if |
| conditions. However, cover is based on the | | | | you have a family to support, you may need |
| severity of the condition which could | | | | something that is going to guarantee their |
| possibly cause some uncertainty regarding the | | | | lifestyle in the worst case scenario and with |
| grading of these illnesses. | | | | the addition of some income protection cover, |
| | | | which would meet outgoings in the event of |
| This is how the plan works: | | | | you becoming unable to work due to illness. |
| | | | This type of cover, unlike the critical |
| Listed in the policy are practically all | | | | illness policy, protects you against common |
| serious illnesses and the payout when one | | | | conditions, which result in you being unable |
| these is diagnosed will be graded according | | | | to carry out your work. |
| to the severity of the condition. The | | | | |
| Prudential says that by tying payments to the | | | | The best course of action would be to |
| degree of seriousness of the illness means | | | | contact a broker and check out the |
| that more payments can be offered to people | | | | alternatives. The internet's a good place to |
| with debilitating illnesses, who may | | | | start and there are some good internet |
| otherwise get nothing at all. An example of | | | | discount's available, along with plenty of |
| this is that should you lose the sight of one | | | | advice. A good broker will be able to compare |
| eye; the Prudential policy will pay 25% of | | | | the products available and come up with the |
| the sum assured. Normally, critical illness | | | | right insurance product for you. |