How Critical Illness Has Evolved and Improved Since the 1990s

Only recently introduced within the UK over the last decade and a half, critical illness insurance has already come on in leaps and bounds since its first introduction to Britain towards the end of the nineties. Initially it took a while for people to grasp the importance and the value of critical illness insurance as a protective financial policy. One that would offer a serious amount of financial help if contracting or being diagnosed with a serious critical illness that prevented them from earning a living.

From the outset insurance companies instantly saw the potential of critical illness policies and for many insurers they became renowned for taking advantage as the popularity for critical illness insurance grew. Marking a significant turning factor for those insurers who developed a ethos of paying out on an ‘all or nothing’ basis, retaliation from the growing consumer market forced them to rethink their ways, creating the beneficial basics of today’s ethical practices towards providing a more fair and unbiased critical illness insurance system.

Obviously there were many ways in which a few insurers did their best to avoid paying out on critical illness claims, such as in the event where a policy holder suffering from a serious illness was denied a claim for example because the condition of their health became so bad, it exceeded set boundaries instilled or outlined by the insurance company. In other cases certain cancer sufferers who underwent extensive treatment for cancer, caught in its earlier stages, including the various treatments such as surgery, tumour removal, radiotherapy courses and chemotherapy treatments for long periods of time.

These people would be unable to claim on their critical illness insurance because although they had to endure all the stress and worry as well as the additional treatments, doctors were able to treat them and offer the end result of an expected full recovery. On the other hand, a patient who had unfortunately developed a disabling critical illness such as Parkinson’s disease, multiple sclerosis or Alzheimer’s disease and was given treatments that greatly prolong their ability to lead a normal life could be eligible for the cash lump sum that’s paid out in a critical illness claim.

Before a radical reforming of critical illness insurance policies in the UK many insurance policyholders were highly confused as the limitations and certain exclusions were just not made clear to them. Thanks to the help from financial ombudsmen and the Association of British Insurers, clearer definitions of policy terms are now being exercised.

The overall flexibility introduced to critical illness policies by insurers meant that policyholders could begin to personalise how they could receive payouts and as the number of registered critical illnesses has now increased to approximately 150 different possible illnesses, there is even greater choice available to new and existing customers. Possibly the one drawback to the increase in policy flexibility is the fact that premiums can often be that much more expensive, however companies such as Critical Illness Insurance dedicate their expertise and knowledgeable understanding to arranging the most competitive and affordable critical illness policies for their clients.