I’m not one for taking sides or having favourites, but it’s hard to ignore Royal London’s serious illness cover when making a recommendation.
Serious illness cover has never been my favourite insurance (❤ income protection ❤ ).
It’s hit-and-miss; with limited illnesses covered, you can’t always be sure that it’s a backup plan that will have your back.
But here comes Royal London Ireland storming the stage with some sassy, serious illness specifications.
And some of their improved Specified Serious Illness Cover are unique in Ireland.
So, let’s dig a little deeper and plough through all the jargon and whatnot to make sense of what Royal London Ireland offers.
If you don’t already know, if you’re unfortunate enough to have to claim on a critical illness insurance policy, your specific illness will be lumped into one of two categories.
a) Full payment
b) Partial payment
They’re pretty self-explanatory categories.
Under a full claim, you’ll get the full expected illness payout because the insurer classifies your condition as more severe or advanced. e.g. you take out 50k serious illness cover, the insurer will pay you 50k tax-free.
If your condition satisfies a partial claim (less serious/advanced illnesses), the insurer will payout 50% of the amount of cover you bought(to a maximum of €15,000). If you insure yourself for 50k, you will get 15k.
Royal London is the same here, but they have given their categories some extra oomph.
They have added some new illnesses they will cover with full payment, such as Bacterial Meningitis, Cauda Equine Syndrome, and Myasthenia Graves.
Now, if these illnesses aren’t resonating in the slightest, aren’t you a lucky duck?
But they are more common than you think.
My client suffered Cauda Equine Syndrome from lifting weights in the gym – another reason to avoid exercise?
They’ve also included two illnesses you can’t access on a serious illness cover plan anywhere else in Ireland.
I get it; partial payment isn’t quite as appealing as the full lump sum.
Yet, if you are in serious need of a payout to cover the bills, I’ll bet even a half payment will help reduce your woes and fears.
Royal London Ireland’s unique partial payments set them apart from the competition.
They are the only insurance provider in Ireland to support those of us affected by a serious mental health issue with their Specified Severe Mental Health Illness Benefit.
With all the crazy thrown at us in our modern world, this is a doozy of an insurance policy.
If you have a diagnosis from a consultant psychologist, an admission to a psychiatric ward for over 14 days, chronic symptoms, and you haven’t responded to comprehensive care or management; you’ll be reaping the insurance benefits.
Unfortunately, Royal London will likely exclude this cover from your policy if you have a history of serious mental health issues.
How serious?
It will be on a “case by case basis” but some broad guidelines are that if someone has an existing significant mental health condition, such as schizophrenia, or has a history of attempting to take their own life within the last 5yrs, then an exclusion would apply.
Typically, for mild and moderate existing mental health conditions, no exclusion would apply.
Royal London’s new brochure states’ Type 1 (adults only), requiring permanent insulin injections’ have been included in their eight new partial payment conditions.
Firstly, I’m no doctor, but surely all Type 1 Diabetics need permanent insulin administration to survive. The language used here is a little odd as I have yet to meet a single client with Type 1 Diabetes who can function without artificial insulin.
Are Royal London going to differentiate between insulin injections and an insulin pump?
Thankfully no, anyone who is diagnosed with T1DM but is using an insulin pump – where they would otherwise require insulin injections – would be covered.
This is great news.
I know Type 1 Diabetes is one of those chronic autoimmune diseases that can take over every aspect of your life, especially if you’re experiencing a period where your condition just isn’t playing ball, so this can be a little silver lining for those newly diagnosed.
New Ireland and Zurich Life also offer cover for T1D. Here’s hoping Aviva and Irish Life join in.
I was hoping Royal London would be the first insurer to get rid of the deplorable “survival period clause,”.
The what now?
Wait till I tell you how this works.
Let’s say you suffer a massive heart attack that is covered by your serious illness policy.
While lying in bed, relieved that you have serious illness cover, you suffer another heart attack and pass away.
Your family make a serious illness claim only to be told “no bueno” because you died within 14 days of the “claimable condition”.
Yep, that’s right, folks, if you don’t survive 14 days, you get nothing.
It’s effing cruel and wholly inappropriate if you ask me.
So what has Royal London done – well, they have reduced the survival period to 10 days.
Look, it’s probably not down to Royal London; I’d say their reinsurer said the price impact for the customer (you) would be severe if they got rid of the survival period completely, so they settled on reducing it as a compromise.
Who knows, maybe next time, the period will drop to 7 days, then 4, then will be gone forever!
So look, if you suffer a serious illness, please hold on for at least ten days.
Sick, I know (and not sick as in?, sick as in ?).
Also, AND THIS IS IMPORTANT!!
Never buy serious illness cover that doesn’t have life insurance attached. By adding life cover, your family can claim your life insurance even if you die within the survival period.
If you have standalone serious illness cover, consider replacing it or buy some life insurance too.
No, they’re not giving you a hand, but they have a service to provide customers like yourself with more support.
Although finances are a major worry when we fall seriously ill, there is so much more we have to deal with when life throws us those health-related curve balls.
Royal London seems to get this.
They provide one-on-one contact with your dedicated nurse if you have a policy with them.
This can include bereavement guidance, illness, support, or end-of-life management.
Even better, this convenient service is available from the very first day of your policy, and your partner and children can use the service too.
At no extra cost, might I add?
Overall, it’s a much improved serious illness offering from Royal London, but it’s not ❤income protection❤
We humans aren’t the best at planning for the inevitable or discussing it.
It’s scary to think about all the things that can go wrong.
It’s so much easier to stick on your rose-tinted glasses and see all the good while hiding the bad.
Trust me; I get it.
But that’s what my expert team and I are here for.
We help you navigate all the info out there as quickly and painlessly as possible.
We don’t want you to mull over every option for months because if you have to, you won’t do anything.
Analysis paralysis is real.
We’ll tell you what you need, how much it will cost and even recommend an insurer.
The rest is up to you.
What’s the first step in protecting you and your family?
Complete this financial questionnaire, and I’ll be right back over email with my no-obligation recommendation.
Who knows, it might even include a dash of Royal London Serious Illness Cover, but it will definitely include ❤income protection❤
Thanks for reading
Nick
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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